Middle East

Royal Jordanian Registers Record JD 31.8 Million Net Profit in the Third Quarter

Royal Jordanian
Royal Jordanian | Tis Meyer

Royal Jordanian achieved a JD31.8 million net profits in the third quarter of 2017 against JD12.9 million attained in the same period last year (+ 146%).

At a press conference held on October 31 at Fairmont Hotel, Amman, RJ President/CEO Stefan Pichler expressed confidence that a significantly improved commercial performance helped RJ to achieve a turnaround in the financial results in the third quarter of this year and praised the team spirit of the management team to make this happen.

He said that the number of passengers the airline transported in the third quarter rose by 5 percent over last year, with RJ aircraft carrying 955,000 passengers this year while in the corresponding months of 2016 it carried 913,000 passengers.

The seat load factor went up from 73 percent in the third quarter of last year to 75 percent this year, a 3 percent increase.

Pichler said:

“One of the key historic weaknesses of our airline was the lack of commercial expertise and experience. We changed our pricing strategy and stimulated the markets with affordable fares, we enhanced the sales performance, we managed our capacity tightly and did the first steps to streamline the product. Now we can see growing travel demand. Our successful sales campaigns resulted in an increase in the revenues in the third quarter of 2017, which reached JD202 million, marking an 8 percent increase over the JD187 million made over the same period last year. We were also able to control the operational expenses in this period, which registered a 3 percent decline: JD148 million in 2017, against JD152.3 million spent in 2016.”

Pichler said that RJ attained a net income of JD5.4 million in the first nine months of 2017, against a net loss of JD2.7 million incurred in the same period last year, marking a 300 % improvement.

“After a very bad start into the first 5 months of this year we were able to break even in June and then reversed our fortunes month by month,” added Pichler.

The number of passengers in this period went up by 5 percent, from 2,350,000 passengers that traveled on RJ between January and September 2016 to 2,463,000 passengers in the same period of 2017.

The seat load factor in the first three quarters increased from 67 percent to 71 percent, a 6 percent growth, and the uplifted cargo grew by 5 percent over the comparison period of last year.

Pichler added that RJ revenues in the January-September period of 2017 amounted to JD487 million, against JD474 million for the corresponding period in 2016 (+27 %).

Pichler gave the outlook as follows:

“We are now making the first steps to transform Royal Jordanian in a successful company and I am quite confident that we will be able to achieve a slight operating profit for 2017. There is a lot of work ahead of us, the company needs fundamental restructuring and we have further potentials to cut down cost and enhance revenues. We have a full agenda ahead of us!”

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