RJ Airlines net operating profit up 47% to JD19m

AMMAN — Royal Jordanian (RJ) Airlines net operating profit in 2018 was JD6 million higher compared to that of the previous year as it reached JD19 million, registering 47 per cent growth, according to an RJ statement received by The Jordan Times on Sunday. 

The company said it submitted its financial disclosure statement to the Jordan Securities Commission and the Amman Stock Exchange and the Companies Control Department which includes the financial results for the 2018 fiscal year. 

RJ achieved this growth despite a 7 per cent rise in total operating costs, led by a 28 per cent increase in average fuel price compared to 2017, which settled the bill at JD159.3 million — JD38 million higher than 2017, the company’s statement indicated. 

Fuel cost currently constitutes 25 per cent of overall costs, one of the highest expenses for airlines. However, RJ has succeeded in boosting its gross profit by JD11 million (up 14 per cent), the statement said.

Despite the competitive environment driven mainly by low-cost carriers, RJ achieved revenues of JD653.3 million, 8 per cent higher than its 2017 revenues. 

The company attributed this to an unprecedented passenger seat load factor reaching 73.8 per cent (up 2.5 points compared to the previous year) — the highest rate in 10 years. 

Regarding passenger numbers, 3.3 million passengers travelled via scheduled flights, a 4 per cent rise. 

As for its net result, RJ recorded a negative net income of JD5.9 million due to losses incurred from the operations of Royal Wings and the difference in exchange rates, mainly of the Sudanese Pound, the statement added.