Qatar Airways says tariff impact manageable with aircraft spares stockpile
Qatar Airways said it can weather the impact of higher tariffs thanks to a stockpile of aircraft spare parts, though it acknowledges challenges to its supply chain and cargo operations, the airline's chief executive told Bloomberg on Friday.
The Gulf carrier has built up sufficient inventory to mitigate potential disruptions, and robust passenger demand will allow the airline to maintain current ticket prices despite economic pressures, Chief Executive Officer Badr Al-Meer said.
'If I tell you tariffs are not impacting us, I will not be honest with you,' Al-Meer told Bloomberg Television. 'Of course, it will have an impact on our supply chain, on our cargo operation.'
His comments highlight the difficult conditions facing airlines and aircraft manufacturers following President Donald Trump's introduction of tariffs with most US trading partners. The aviation industry is already contending with higher spare parts prices and potential tariffs on new aircraft, while some markets face weakening travel demand.
Qatar Airways: Strong US sales
Despite these challenges, Qatar Airways continues to see strong sales on its US routes, with the trend expected to continue in coming months, according to Al-Meer. Emirates, the world's largest long-haul airline, expressed similar sentiments this week.
This contrasts with carriers such as Virgin Atlantic Airways Ltd., which has reported some decline in transatlantic routes. American Airlines Group Inc. on Thursday withdrew its full-year earnings outlook, citing economic uncertainty.
Al-Meer said Qatar Airways would absorb any cost increases rather than passing them on to customers through higher ticket prices. The airline already faces additional expenses due to operating a diverse fleet of both Boeing Co. and Airbus SE aircraft.
The CEO indicated a possible shift toward an all-Airbus narrowbody fleet, suggesting that Boeing 737 planes currently on lease would eventually be phased out. Bloomberg reported in December that the airline was considering dropping a Boeing narrowbody order placed during a dispute with Airbus.
With relations with the European planemaker now improved, Al-Meer pointed to Qatar Airways' existing order of nearly 60 A321neos from Airbus when discussing future narrowbody strategy.
The carrier is also preparing to announce a major widebody aircraft purchase in the coming weeks, further cementing the Middle East's position as a key market for aircraft manufacturers.
Qatar Airways, now the second-largest airline in the region behind Emirates, has built its long-range fleet around Boeing 777 and 787 models, as well as Airbus A350 and older A330 aircraft. The airline has ordered Boeing's new 777X model, though that aircraft is delayed and not expected to enter service with Qatar before next year.
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