Royal Jordanian posts JOD21 million profit
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In a recent announcement, Royal Jordanian’s board of directors, presided by chairman, Suleiman Hafez reported the company’s audited financial results at a net profit before tax of JOD21 million in 2015.
This was a positive development from 2014, where the airline registered JOD49.5 m net losses before tax.
The net profit after tax reached JOD16 m, while in 2014 the company had registered JOD39.6 m in net losses. Hafez attributed growth to efficiency and loyalty of the staff, and to the company’s keenness to implement a business plan from 2015-2019.
The plan focuses on constant renewal of fleet and review of route network, restructuring in all areas, taking measures to increase revenues and reduce operating costs, working to increase the company’s market share, looking for available growth opportunities, all the while improving quality of services and a leading position in the Levant.
Hafez pointed out that in the first nine months of 2015, the company registered JOD27 m profits before tax. Air traffic is seasonal in nature. Normally airlines, RJ included, achieve better financial results in second and third quarters, which witness active traffic, particularly during the summer season, whereas first and last quarters of each year usually see a drop in the number of travellers. However, the airline achieved JOD21 m at end of 2015.
He added that the airline’s policy of cost control resulted in reducing operating cost in 2015 by 22%, mentioning that operating costs amounted to JOD715 m in 2014, against JOD559 m in 2015.
RJ shut down a number of stations in light of their weak economic feasibility and, consequently, reduced the number of its aircraft. The stations are Delhi, Mumbai, Colombo, Lagos, Accra, Milan, Alexandria and Al-Ain. At the same time, RJ started reaching new destinations, like Tabuk, Najaf, Ankara, Jakarta and Guangzhou, the last to be launched next week.
The company also increased frequency of flights to certain destinations in response to greater demand. For instance, flights to Aqaba increased from 11 to 16 weekly. Flights to eight destinations are still halted due to security reasons; they are Damascus, Aleppo, Mosul, Tripoli, Benghazi, Misrata, Sanaa and Aden.
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