Qatar Airways Group has disclosed that the consideration for its 25% shareholding in Virgin Australia amounted to just under QR1.87 billion ($513 million).
It acquired the interest in March this year, having obtained Australian regulatory approval the month before.
At the point of acquisition, says the airline, Virgin Australia had negative net assets – mainly owing to accumulated losses from previous years.
“As a result, a substantial portion of the purchase price is expected to be allocated to goodwill and identifiable intangible assets,” says Qatar Airways in its full-year financial statement for 2024-25.
It says this reflects anticipated synergies, future earnings potential, and strategic benefits derived from the investment.
The Doha-based carrier is conducting a purchase price allocation exercise, yet to be finalised, which could identify intangible assets such as airports slots and the loyalty scheme.
Qatar Airways is continuing to assess whether there are indicators of impairment.
But it states that, based on “current financial performance” and the “anticipated recovery” of Virgin Australia’s equity position, no such indicators have so far been identified.
Qatar Airways also took a 25% share of South African carrier Airlink in September last year.
Its financial statement shows that the total consideration paid was nearly QR149 million.
The company already has shareholdings in IAG, LATAM Airlines Group, Cathay Pacific, China Southern Airlines, and the US regional operator JSX.
Qatar Airways Group revealed the details of its investments in Virgin Australia and Airlink as it unveiled full-year net profits of QR7.85 billion – a rise of 28%.
“Our collective success is proof positive of the ‘Qatar Airways 2.0’ strategy,” says group chief executive Badr Mohammed Al-Meer, adding that the financial results are “record-breaking”.
The company generated revenues of QR85.6 billion including QR60.6 billion from scheduled passenger services and QR17.9 billion from cargo.
Operating expenses totalled QR71.4 billion, resulting in an operating profit of QR14.7 billion.
Qatar Airways increased network capacity by 3.5% compared with the previous year, which it attributes to better fleet utilisation, “operating smarter and with greater efficiency”.
Over the course of 2024-25 it introduced two more passenger aircraft and a freighter, as well as seven private jets, and two leased airframes, taking its fleet to 292 at the end of the fiscal year. These comprised 233 passenger aircraft, 28 freighters, and 31 executive jets.
