The Gulf-based carrier was presented with the honor at Tuesday's World Airline Awards at the 2017 Paris Air Show.
The long-haul sister airline, AirAsia X has also scooped up the World's Best Low-Cost Airline Premium Cabin and World's Best Low-Cost Airline Premium Seat awards for the fifth straight year.
Meanwhile, Qatar Airways Chief Executive Officer Akbar Al Baker dedicated the Airline of the Year award to his country, which has been reeling from the decision of four rival Arab states to cut diplomatic and transport links with Qatar.
Two Indian airlines found a place in the Skytrax Top 100 with IndiGo at the 57th position and Jet Airways at the 93rd position. Dozens of other Skytrax awards were also announced, including one for Air Canada, which took the award for "Best Airline in North America". But now, Qatar Airways, with their "extravagant lounges", is back on top.
AirAsia Group Cabin Crew Head Suhaila Hassan said, "What an incredible honour to be given the opportunity to accept this award on behalf of AirAsia and my fellow Allstars".
In addition to its global win, Air Transat was recently voted Best Charter Airline at the 18th annual Agents' Choice Awards, conducted by Canadian Travel Press, Travel Courier and TravelPress.com, for the 10th consecutive year. In addition, Azul was also named for the second consecutive year as the victor of the Best Airline Staff in South America award. He adds that Fastjet's plans to assume the role of Africa's first pan-continental low-priced airline are well underway.
"It is an honour to be recognized by this prestigious global award for the sixth consecutive year", said Jean-François Lemay, president and general manager of Air Transat.
Irish passengers will experience Qatar Airways' renowned on-board service and have the opportunity to enjoy the airline's relaunched superior entertainment system offering up to 3,000 entertainment options. It moves up from No. 2 as last year's No. 1 Emirates fell to No. 4.
Qatar Airways Cargo, the world's third largest cargo carrier, serves more than 50 exclusive freighter destinations worldwide via its Doha hub and also delivers freight to more than 150 key business and leisure destinations globally on 199 aircraft. Follow @Fly_Norwegian on Twitter, join the discussion on Facebook and keep up with our adventures on Instagram.