RJ narrows loss by JD1m during first quarter of 2016

AMMAN — Royal Jordanian (RJ) announced Sunday in a press statement that losses dropped by JD1 million to JD7.3 million in the first quarter (Q1) of 2016 from JD8.3 million in Q1 of 2015.  “The results improved by 13 per cent despite the unfair competition the company faces,” the company said in the statement.

“The drop in losses happened even though Q1 of 2016 revenues also went down 5 per cent to JD140.4 million from JD148.4 million in the first three months of 2015.”  The lower revenues were attributed to the reduced tickets prices resulting from lower oil prices. RJ reiterated that air traffic is seasonal in nature.

“Normally airlines, RJ included, see a remarkable regression in the number of travellers in the first and last quarters of the year [the winter season], whereas they witness active traffic in the second quarter and reaching the peak season in the third quarter, during the summer and holidays, which means improved seat factor,” it said. Improved seat factor enables airlines to achieve better financial results at the end of the year, as was the case with RJ last year.