RJ’s operational revenues reach around JD653 million in 2018 thanks to growth in passenger numbers

By JT - Apr 29,2019 - Last updated at Apr 29,2019

Royal Jordanian on Sunday held its general assembly meeting where 2018’s financial results were discussed, including an increase in cargo sales and growth in gross profit (Photo courtesy of Facebook)

AMMAN — The operational revenues of Royal Jordanian (RJ) in 2018 reached JD653.3 million compared to JD605.8 million in 2017, marking an increase of 8 per cent of JD47.5 million, Chairman of RJ’s Board of Directors Said Darwazah announced on Sunday.

Darwazah attributed the increase to a 4 per cent growth in the number of passengers, from 3.1 million in 2017 to 3.3 million in 2018, which increased the load factor from 71.2 per cent in 2017 to 73.8 per cent in 2018.

The figures were announced during RJ’s general assembly meeting on Sunday to discuss the board’s report on the 2018 financial results and the business perspectives for 2019, the Jordan News Agency, Petra, reported.

The chairman said that the national carrier paid JD159.3 million for fuel in 2018, compared with the JD121.5 million in 2017, an increase of 31 per cent. “Fuel costs constitute 28 per cent of the total operating costs.”

RJ President and CEO Stefan Pichler said that, despite the rising fuel costs, RJ had an enhanced operating performance, registering a net operating profit of JD19 million, an increase of 47 per cent in 2017, due to the JD47.5 million growth in revenues, a higher load factor and passenger numbers, cargo revenue and ancillary revenue.

He said that cargo sales have also improved “significantly”, adding that the company sold 55 per cent of the capacity offered for cargo on passenger aircraft, which resulted in JD45.6 million cargo revenues.

Pichler added that RJ continued to enhance its digital capabilities, resulting in 27 per cent more online sales, with a value of JD77.8 million.

On the financial results in the end of 2018, Pichler said that the carrier’s gross profit in the year stood at JD90.4 million compared with JD79.5 million in 2017, marking an increase of 14 per cent.

He added that the company recorded a net loss of JD5.9 million in 2018 due to the losses incurred from the operations of Royal Wings and the difference in exchange rates, mainly of the Sudanese pound.

He said that the decreased exchange rate of the Sudanese pound made RJ lose JD4.2 million, and the Royal Wings losses made RJ incur JD3.9 million losses.

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