DUBAI - State-owned Qatar Airways posted ​a more ⁠than 7% decline in annual net profit ‌on Wednesday but flagged progress in rebuilding its global schedule as ​it navigates the impact of the Iran war.

The industry has faced ​its biggest ​crisis since the COVID-19 pandemic, with temporary airspace closures in the Middle East forcing thousands of ⁠cancellations since the conflict started at the end of February.

Qatar Airways reported net profit of 7.08 billion QAR ($1.94 billion) for the 12 months to March 31 as ​passenger numbers slipped ‌to 41.8 ⁠million from ⁠43.1 million the previous year.

"We are actively rebuilding our global ​network with the confidence that comes ‌from a balance sheet that ⁠has never been stronger, partnerships that proved their depth when we needed them most and an organisation that has demonstrated, under genuine pressure, exactly what it is capable of,” CEO Hamad Al-Khater said in a statement.

The Gulf carrier aims to expand its network to reach more than 160 destinations by this summer, it ‌said.

Major Gulf airlines including Qatar Airways and ⁠Dubai's Emirates are restoring their networks gradually, ​but capacity remains below pre-war levels. Renewed attacks on the United Arab Emirates this month have cast uncertainty ​over a ‌fragile ceasefire that began in April.

($1 = 3.6450 ⁠Qatar riyals)

(Reporting by Federico ​Maccioni Writing by Tala Ramadan Editing by David Goodman)