Doha, Qatar – Qatar Airways has decided not to pay annual bonuses to its employees this year. This move comes amid significant operational and financial pressures facing the airline, resulting from the repercussions of the US-Israeli war on Iran and the accompanying air closures and widespread disruptions to regional air traffic.
According to an internal memo seen by Bloomberg, the decision affects approximately 60,000 employees. The move is seen as prioritizing the company’s long-term stability, amid ongoing geopolitical uncertainty in the Middle East.
Qatar Airways is among the Gulf airlines most affected by the crisis. It has been forced to cancel tens of thousands of flights. Currently, the company is operating at less than 60% of its usual schedule. Consequently, this has impacted its revenues and cash flow.
The company’s latest financial results showed a decline in net profit of approximately 9.9% to QAR 7.08 billion. This equates to approximately USD 1.94 billion for the fiscal year ending March 31. The company continues to rebuild its global network from its hub at Hamad International Airport.
This issue represents one of the most significant challenges facing Qatar Airways’ new CEO, Hamad Ali Al Khater. He is grappling with the repercussions of flight cancellations and disruptions to aircraft and crew operations, in addition to the rising costs of running a vast international network in a highly volatile regional environment.
