Attending were members of the board of directors, RJ President/CEO Amer Hadidi, RJ’s Chief Finance Officer Omar Saeed, the companies’ general comptroller Burhan Akroush, Ernst and Young auditors of RJ accounts, and a number of shareholders owning 60% of the company capital, which amounts to 84.3 million shares/dinars.
Lozi’s speech, which was distributed to the shareholders, said that Royal Jordanian, which celebrates its 50th anniversary this year, endeavors to execute a vision that includes a number of strategic plans that basically aim at optimizing the value of the company. At the forefront of these plans, the airline seeks to increase its capital from JD84.3 million to JD184.3 million.
Lozi pointed out that the government approved to maintain its 26% ownership in RJ’s new capital. The company is studying ways to raise the capital.
Lozi said that the company will continue in 2013 and in the coming years to exert all efforts to attract more passengers, increase revenues, continue to modernize the IT systems and the air and ground services. The airline is preparing to introduce the 11 Boeing 787s, the first batch of which is to join the fleet in the third quarter of 2014. They will play a major role in improving the air services, coinciding with opening of the new Queen Alia International Airport terminal.
Operationally, he said that traffic results of 2012 were positive, although the demand on travel decreased globally. The seat factor went up from 70% in 2011 to 73% last year as the number of travelers increased by 6%, from 3.2 million to 3.4 million, even though the number of flights and flying hours remained unchanged, at 40,000 and 116,000, respectively.
Total earnings amounted to JD802 million in 2012, marking a 9% growth over the JD736 million recorded in the previous year.
RJ was capable to lower its operation expenditure by 1%, bringing it down to JD722.8 million last year from JD728.6 million the year before.
The company achieved a JD79.2 million gross profit last year, 968% higher than the JD7.4 million posted in 2011.
Lozi pointed out that the growth in earnings and the relative decline in costs enabled the company to reverse the JD57.9 million net loss of 2011 into a JD1.1 million net profit in 2012.
Royal Jordanian is proud of the hard work, determination and loyalty of its employees, who were behind the major leap achieved in 2012, which helped it offset the losses incurred in 2011 due to the regional events, high fuel prices and drop in tourism activity. Turning the loss into profit is a good reason to be proud, said Lozi, adding that the cost control program that RJ executed in 2012 never affected the level of service.
He stressed that the net profit of 2012 could have been much better had the fuel prices not exceeded $110 per barrel. The fuel bill RJ paid reached JD290 million, similar to the amount paid in 2011.
The fuel bill in 2012 accounted for about 40% of RJ’s overall operational costs, despite the fact that RJ signed several fuel hedging contracts that covered around 31% of the total fuel consumption. It is difficult to control the cost of fuel, which has a direct impact on the net profits.
Commending employees for saving energy, the chairman mentioned that pilots executed an ambitious program that culminated in a JD10.3 million saving. They capitalized on their experience and professionalism in managing flights and adhering to flight plans, besides other technical measures taken at the appropriate time.
RJ President/CEO Amer Hadidi said that the airline is planning a strategy for the coming five years that will enable it to tap into sources of revenues other than those generated by the transport of passengers and air cargo, and these include providing ground-handling services to other carriers operating at Arab airports, besides those at Queen Alia International Airport, as well as offering maintenance services to other airlines after RJ’s new hangar is inaugurated. This is expected to increase the RJ share value and the return on shares, maximizing the value of the airline in the coming few years.
Hadidi added that another aspect of the strategy will focus on modernizing the fleet and getting into new regional and international markets where RJ has a strong competitive edge. This will lead to increasing the number of passengers and revenues.
He stressed confidence in the staff and its competence to implement this vision in order to bolster RJ’s operational and financial results.
During the meeting, Lozi, Hadidi and Saeed responded to the shareholders’ questions about the airline’s performance and plans.
They thanked the shareholders for their confidence that made them invest in the Kingdom’s national carrier, which has the potential to achieve further success.
Nov
Amman, Nov. 20, 2024- Royal Jordanian announced the launch of a new nonstop route between Queen Alia International Airport, Amman, and Washington Dulles International Airport, Washington, D.C. This exciting new service will commence mid-March 2025, while further solidifying RJ’s commitment to expanding its global network and enhancing connectivity between the Middle East and North America.
Oct
Dead Sea, Hashemite Kingdom of Jordan – October 30, 2024 – The 57th Annual General Meeting of the Arab Air Carriers’ Organization (AACO) is being held from October 29 to 31, 2024, at the Kempinski Hotel Ishtar Dead Sea under the Royal Patronage of His Majesty King Abdullah II ibn Al Hussein and by the invitation of Royal Jordanian, the national carrier of the Hashemite Kingdom of Jordan. The event brings together over 200 participants, including Chief Executive Officers of AACO member airlines, partner airlines, and industry stakeholders such as aircraft and engine manufacturers, information technology partners, and other key figures in the Arab and global aviation industries.
Sep
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These are used to recognize you when you return to our websites. This enables us to personalize our content for you, greet you by name and remember your preferences (for example, your country of residence, your language, the last trip you booked or the reservations associated with your Royal Club account). Disabling these cookies will prevent certain pages of our websites/app from displaying correctly (for example, your Royal Club account), limit the level of online help Royal Jordanian can offer and block us from storing preferences needed to display or disable certain features