Qatar Claims Profitability, But Provides No Evidence or Financial Documents

Washington, D.C. (June 16, 2015) – The Partnership for Open & Fair Skies today questioned the surprise announcement by Qatar Airways’ CEO, Akbar Al Baker, on the airline’s 2014 financial summary. In a Wall Street Journal interview, Al Baker claimed the airline earned $103 million in profits ‘in the financial year,’ but provided no corroborating documents or financial statements:

“CEO Akbar Al Baker asserted Qatar Airways made $103 million in profits last year, despite providing no evidence to support this claim and once again refusing to open the company books,” said Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies. “He said that, ‘We are not afraid to [publish earnings] we are a private company.’ Yet Al Baker has produced nothing to back up his claim. The truth is, Qatar Airways would be out of business without the ongoing financial support from the Qatar Treasury.”

Just last month, Etihad Airways claimed $73 million in profitability without offering any evidence or releasing its financial statements.

“There is no denying the truth – Qatar Airways and Etihad receive billions in illegal subsidies from the governments of Qatar and United Arab Emirates, a direct violation of Open Skies policies,” said Zuckman. “If these airlines claim profitability and independent viability, free of subsidies, why not open their books?”

Complete financial documents for each of the three U.S. airlines in the Partnership can be found here: American Airlines, Delta Air Lines, and United Airlines.

Because the Gulf airlines do not provide full disclosure of their financial statements, as U.S. airline carriers do, it is impossible to determine how much additional money was funneled directly to the airlines from Qatar and the UAE. A marketplace free from subsidies and other government interference is the premise of Open Skies policy, but all three airlines continue to resist calls to provide a full accounting of their subsidization.

A two-year investigative study found that Qatar and the UAE has provided over $42 billion to their airlines in subsidies and other unfair benefits. The study also found that Qatar Airways and Etihad’s recent claims of profitability were unfounded.

The Partnership, along with 262 members of the U.S. House of Representatives, mayors of multiple major U.S. cities, and dozens of business, trade and economic groups around the country, is asking the U.S. government to open consultations with Qatar and UAE and is seeking an immediate freeze on the introduction of new passenger service by the Gulf carriers during these consultations.