Qatar Airways takes huge financial loss from Gulf Arab boycott

By Middle East Affairs

The chief executive of Qatar Airways said the airline will report a “very large loss” for its financial year ending March 31, Reuters reports.

Akbar al-Baker told reporters in Berlin that a ban on Qatar Airways since last June that prevented it from using airspace over some Arab countries has been delivering a financial blow to the airline.

Qatar Airways announced Sunday it would slash the prices of its flights, such as 25 percent off all cabin classes and a discount for friends and family traveling together.

It also added new destinations, such as in Thailand, Russia and Malaysia.

“Passengers now have even more incentive to travel with friends and family, as they can take advantage of our Companion Offer in Premium. We look forward to welcoming all passengers on board,” said Qatar Airways Chief Commercial Officer Ehab Amin in a statement.

This announcement comes a day after The International Monetary Fund put out a report that says Qatar’s banking system has recovered from the initial hits it took by the same boycott, and the economy should grow 2.6 percent this year.

Saudi Arabia, United Arab Emirates and Egypt are boycotting Qatar for alleged ties to terrorists, which Qatar denies.