RJ holds virtual annual general meeting, issues financial results of 2023

The meeting was chaired by RJ’s Board of Directors Chairman Said Darwazeh and was attended by vice chairman, CEO Samer Majali, RJ board members, companies’ general controller deputy, representatives of the Government Investments Management Company, RJ accounts auditor Ernst and Young and other shareholders and RJ employees. 

Darwazeh said RJ has proceeded with the largest investment decision in its history in order to modernise and expand its fleet of narrow- and wide-bodied aircraft, which will number 41 by the end of 2028, according to RJ statement. 

He added that RJ is bound to reap the fruits of this investment, including improved services and the introduction of a new generation, fuel-efficient aircraft, while reducing operating costs and maximising passenger satisfaction. 

"The modernisation plan includes the introduction of modern E2 regional jets, Airbus A320neo and Boeing 787-9 aircraft. As for the route network, the company intends to reach 60 international destinations, in 2023, RJ started operating new services to Bahrain, Algiers, Brussels, Stockholm and Düsseldorf." 

Majali said that in 2023, RJ sought to achieve operational and financial growth, develop the company and improve its performance indicators, as the financial results showed an increase in operating revenues by 20 per cent, reaching JD733.3 million, compared with JD612.8 million in 2022. 

"Royal Jordanian fleet transported 3.6 million passengers, compared with 3 million passengers in 2022, which led to an increase in the seat load factor to 77.9 per cent," Majali said. 

Royal Jordanian achieved net profits of JD10.8 million during the first nine months of 2023, compared to a loss of JD71.6 million for the same period in 2022, with expectations at the time that this profit would grow by the end of 2023, the statement said. 

"However, the results of the fourth quarter of 2023 were greatly affected by the war on Gaza, which led to a decrease in the travel demand to Jordan and consequently a decrease in the company’s revenues in this quarter by about JD40 million than expected, resulting in a net loss in 2023 amounting to JD8.7 million compared with a net loss of JD78.9 million in 2022, thanks to the company’s efforts to reduce costs and control expenses to maintain the positive results and record performance that have been achieved," according to the statement. 

Majali pointed out that RJ completed the capital restructuring procedures during the fourth quarter of 2023, in line with the requirements of the Companies Law, by amortising JD201 million from the balance of accumulated losses and amortising the value of the mandatory reserve, and increasing the company’s capital by JD240 million (JD170 million by coming to own shares of the Jordan Airports Company, and JD70 million payments on the capital account). 

Majali said that RJ is currently pursuing a strategy that supports national efforts aimed at promoting Jordan as a tourist destination. An important driver and enabler of RJ’s development is the Economic Modernisation Vision, which was launched by His Majesty King Abdullah, among whose objectives is “Destination Jordan” that heavily hinges on the tourism industry and holds significant potential since Jordan is known for the diversity of its religious, historical and ecological sites, as well as for its medical tourism.