Royal Jordanian achieves JD19.6 million in profits in the first nine months of this year

The results show that RJ achieved profits of JD19.6 million (before provision of JD6 million loss on sale of fixed asset), compared to JD25.5 million in the same period of 2009. Gross profits reached JD65.5 million, against JD73.3 million for the comparison period last year.

Lozi said that the profits were registered despite the challenges that the air transport industry has been facing, the most significant being sharp competition and its direct effect on the drop in the yield per passenger. Moreover, this year saw an increase in fuel prices compared to last year; the fuel bill the airline paid in the first nine months of this year was JD151 million, whereas it paid JD110 million for the same period last year.

He stressed the Board of Directors' confidence in the measures the airline took to increase productivity, control costs and cut the operational expenditures without affecting the level of air and ground services offered passengers. He also expressed optimism that RJ will end up this year with satisfying results.

The airline is in constant search of new means of boosting revenues.

RJ President/CEO Hussein Dabbas expressed appreciation for the Board of Directors' support for the airline's endeavors to upgrade services, improve revenues, face competition and cope with the increase in fuel prices.

He pointed out that despite challenges, the airline achieved positive financial results in the first nine months of this year: operating revenues went up by 14.6%, to JD516 million, this year, from JD450 million for the comparison period last year.

Dabbas said that the regression in the net profits compared to last year's is attributed to the operational costs which increased from JD377 million in the first nine months of 2009 to JD450 million this year, an increase of 19.5%.

He added that the number of passengers carried on board RJ aircraft grew by 15%, from 2 million passengers in the first nine months of 2009 to 2.3 million this year. Thus, the seat factor rose from 67% to 71%.

Number of flights also increased by 9%, according to Dabbas, to reach 29,063 departures, against 26,770 departures operated in the comparison period last year. This led to a growth in the flying hours of the RJ fleet to 85,000 hours compared to 79,000 flown in the first nine months of 2009, which marks a 7% increase.

The uplifted cargo increased by 33%, as freighters, along with the passengers' aircraft, carried more than 44,000 tons in the first nine months of this year compared to 33,000 tons carried in the same period last year, said Dabbas.

He stressed that RJ will spare no effort to control costs, increase revenues and open new markets to boost its presence regionally and internationally, maintaining its fine reputation and distinguished services.

RJ is known for the features it enjoys: a young fleet of aircraft, modern technology used during all travel procedures, a network of direct routes to 58 international destinations and a broader network covered by the oneworld airline alliance that reaches to more than 750 points around the world.