The FINANCIAL -- The Royal Jordanian Board of Directors chaired by Nasser Lozi approved in its October 28, 2009, session the financial results for the first nine months of 2009.
RJ achieved net profits of JD25.5 million, against JD3.8 million in net losses incurred during the same period of last year. The gross profit reached around JD40.7 million, against the JD21.5 million gross profits for the comparison period, marking an 89% increase.
"The airline showed thus that it was capable of logging positive results despite the fact that operating revenues went down by 16%, from JD532 million in the first nine months of 2008 to JD449 million for the same period of 2009," RJ said.
Lozi said that this drop in revenues stemmed from the challenges that the international air transport industry has been facing and the slump in passenger traffic due to the global economic crisis.
He also stressed the board of directors' confidence in the measures the airline management has been taking to leverage the outcome of the crisis. RJ, he added, has used a successful cost-control policy managed to cut the operational expenditures without affecting the level of air and ground services offered passengers. Moreover, the airline is in constant search of new means of boosting revenues.
The chairman of the board expressed optimism that RJ will end up this year with satisfying results.
RJ President/CEO Hussein Dabbas expressed appreciation for the board of directors’ support for the airline endeavors to upgrade services, improve its situation and overcome the effects of the economic crisis.
He pointed out that the profits came as a result of the decrease in fuel expenses in the past nine months, by 50% of the fuel bill the airline paid during the comparison period in 2008. Additionally, the airline exerted continuous efforts to reduce the operational costs by 20% and the available seat kilometers (ASKs) by 4% during this period.
Dabbas said the drop in revenues is due to the 3% decrease in the number of passengers using RJ aircraft and the 32% drop in uplifted cargo.
He added that because of the competition witnessed in the region, the airline reduced ticket fares, leading to a 14% drop in passenger yield; the drop was from JD216 in the first nine months of 2008 to JD185 in the comparison period this year.
The RJ president said that the decline in passenger traffic led to a drop in the key performance indicators during the above-mentioned period, when the seat factor went down by 8% to reach 67 points this year, compared to the same period last year, which witnessed 73 points. The load factor also went down from 55 points to 49 points, marking an 11% drop. However, the number of departures rose by 5% and of flying hours by 4%, due to the modifications to available seat kilometers.
Dabbas stressed that RJ will spare no effort to control costs, increase revenues and open new markets to boost its presence regionally and internationally, making a reality of its vision of becoming the airline of choice connecting Jordan and the Levant with the world.
That, he said, will be achieved due to the distinguished features RJ enjoys: a young fleet of aircraft, modern technological systems, a network of direct routes to 56 international destinations and a broader network covered by the oneworld airline alliance that reaches to more than 700 points around the world.
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