Qatar Airways drops employee bonus payouts after Iran war hits flights and revenue

Qatar Airways will not hand out bonuses to nearly 60,000 employees this year after the US-Israel war on Iran severely disrupted operations and wiped out billions in revenue, as reported by Bloomberg. 

According to a memo sent to staff this week and seen by Bloomberg, the airline said the ongoing geopolitical tensions across the Middle East continue to “significantly affect” both Qatar and the wider group.

The memo stated that the decision “prioritises long-term stability” as uncertainty continues to weigh heavily on the aviation sector.

Flights disrupted

The conflict triggered widespread operational chaos for the Gulf carrier, forcing the cancellation of tens of thousands of flights and throwing carefully planned schedules into disarray.

For decades, Qatar Airways has positioned itself as a central player in global aviation alongside rivals such as Emirates. Its Doha hub became a critical transit point for long-haul international travel.

However, when disruptions intensified in February, the airline’s tightly coordinated network of passengers, aircraft and crews was severely impacted, leaving tens of thousands of travellers stranded and hundreds of aircraft out of position.

Staff impact

Bonuses at Qatar Airways have only been distributed during the past three years. Payments typically range from several weeks’ salary for non-managerial employees to multiple months’ compensation for executives and vice presidents, according to people familiar with the matter.

The move contrasts sharply with some regional and international competitors.

Employees at Emirates reportedly received a smaller bonus this year compared with the previous financial year, while Singapore Airlines staff were awarded bonuses worth around 22 weeks’ pay, according to local media reports.

Cash preservation

The airline has also been exploring ways to conserve cash amid the uncertainty.

According to people familiar with the matter, Qatar Airways has approached several aircraft lessors to discuss potentially deferring or reducing rental payments over recent months.

The crisis marks the first major test for the airline’s new chief executive, Hamad Ali Al‑Khater, who only assumed the role a few months ago.

Qatar Airways recently reported that profit for the latest financial year fell about 10% to 7.08 billion Qatari riyals.

The airline did not immediately respond to a request for comment.