Royal Jordanian returns to profit in 2009

Airline chairman announces $40.3m net profit for year, compared to 2008 loss.
Royal Jordanian returns to profit in 2009
PROFIT RETURN: Royal Jordanian Airline announced net profit of $40.3m in 2009 after a loss in 2008.
By Andy Sambidge
Tue 16 Feb 2010 09:36 AM

Royal Jordanian Airline on Tuesday announced that revenues were down 15 percent in 2009 as the global economic crisis impacted on both cargo and passenger travel.

The carrier generated net profits of JD28.6m ($40.3m) for the year, compared to net losses of JD24.7m experienced in 2008.

Airline chairman Nasser Lozi said the board was satisfied with the result, adding that they reflected "the airline's ability to make the best use of available resources, in spite of their limitations".

President and CEO, Hussein Dabbas, said operational revenues decreased from JD700m in 2008 to JD598m achieved in 2009, a decline of 15 percent, including a "remarkable regression" in cargo.

Operational costs went down by 19.1 percent, from JD675m in 2008 to JD546.8m in 2009, due to the decrease in fuel prices globally, leading to a decline in the fuel bill of the company by 47 percent compared to 2008.

Dabbas said that in 2009, the carrier transported 2.7 million passengers, 1 percent less than in 2008, and the passenger yield decreased by 13 percent due to reducing ticket prices in response to the decrease in oil prices and the sharp competition with the other airlines.

Flight frequencies and flying hours went up by 4 percent each, while air freighting declined by 27 percent compared to 2008.

Dabbas said that in 2010 the airline would focus facing up to the annulment of route exclusivity this month, which RJ enjoyed on all its regular routes.

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