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Significantly improved financial performance in H1 2018

Jul


Amman, July 31, 2018 -- The Royal Jordanian Board of Directors approved the financial results for the first half of this year during its session held on July 29, 2018. The results show that the company registered a remarkable progress in the financial and operational performance despite the 27% increase in the fuel bill over the first half of 2017. 

 

RJ revenues grew from JD284 million in the first half of 2017 to JD317 million in the same period of 2018, a 12% increase. However, operational expenses went up by 4% from JD271.4 million in H1 2017 to JD283.4 million in the comparison period of 2018 due to the increase in fuel bill from JD59.2 million to JD74.9 million.

 

RJ President/CEO Stefan Pichler said that the company carried out non-stop promotions in the first half of this year, which encouraged passengers to resort more and more to travel aboard Royal Jordanian aircraft, due to the enticing airfares. This resulted in 6% more passengers during this period when 93,000 more travelers flew RJ than in first half of 2017.

 

The growing number of passengers lifted the seat load factor by 4.4 points in the comparison period, from 68.4% to 72.8%. As a result, RJ reduced its net loss for the first six months of 2018 to JD12.7 million after tax from JD26.3 million incurred in H1 2017, or 52%.

 

Pichler said that as a result of these positive KPIs, RJ achieved a gross profit of JD33.5 million compared to JD12.8 million in the first half of 2017, a 161% increase. He said that the performance indicators of the second quarter of this year were good, leading to a net loss reduction by more than half in the first six months of the year.

 

He also noted that the third quarter of this year is still witnessing an increased demand on booking and travel on board RJ aircraft to all the destinations on its route network due to the summer season and the dynamism of tourism to and from Jordan, in addition to the upcoming Hajj season.

 

Pichler stressed that all RJ employees are working relentlessly during the peak season to facilitate passengers’ travel and offer them the best services on the ground and in the air. He also said that the airline is increasing frequencies of flights, and operating extra flights to certain tourist destinations and charter flights to cater for the increased demand on travel to and from Jordan, as well as to cater for transit passengers travelling to other points on RJ’s network.

 

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