Royal Jordanian” reduces its losses this year by half

Media In / Agencies / Amman 2 May 2018

The loss of Royal Jordanian Company during the first quarter of this year to 13.8 million dinars compared to the same period last year, estimated at 26.3 million dinars. In a press conference, Chief Executive Officer of Jordan Stephan Beshler said: “The significant drop in the first quarter loss was due to an increase in total revenues to reach KD 143 million, an increase of 16.6 million dinars over the estimated budget and 16.9 million dinars for the first quarter of 2017. . Revenue from sales of passengers increased by 13 per cent, shipping sales by 18 per cent, shipments of freight stores by 46 per cent and online ticket sales by 73 per cent, and revenues from the Turkish-owned Takram Airports Services increased by 28 per cent percent. He pointed out that the plan to shift to profitability launched by the company in the second half of 2017 and is being implemented currently began to bear positive fruit in the light of financial results that showed that the company recorded a net profit before tax 468 thousand dinars, considering that this figure, despite its modest, Is a strong indicator of improved overall performance for the company which had suffered a net loss in the first six months of 2017 of KD 26.3 million. He explained that the preliminary results of the continuous travel and sales offers and the transformation plan began to emerge since the last quarter of 2017, after the company achieved excellent results in the third quarter of the same year, when it was able to achieve a net profit of 31.8 million dinars, thus covering the loss of the first half Recording a net profit for the first nine months of KD 4.5 million. The company achieved a profit of KD 24.6 million compared to the loss of 2016. The result was a rise in the number of passengers in the last quarter of 2017 by 15 per cent, an increase in the number of passengers by 9 points, a rise of 7 per cent in 2017 and a 5 per cent increase in the number of passengers to 71 Compared to a 66 percent increase in 2016, which led to an increase in revenues last year of KD 25 million to reach 623 million dinars compared to 598 million dinars in 2016 and a rise of 4 percent, bringing the net operating profit for 2017 to 12 million dinars compared to With 5 million dinars in 2016. In the first three months of this year, Royal Jordanian transported 744,000 passengers compared to 698,000 passengers in the same period of 2017, up 7 percent from the previous year. The five-year work plan, which continues until 2022, includes several initiatives aimed at boosting the company’s revenues by 7 percent and implementing various measures to reduce expenses by 6 percent annually. With regard to the network of lines and fleet, Bishler pointed out that the transformation plan launched by the company includes the addition of three new destinations, namely, Washington, Stockholm and Copenhagen in early June, pointing out that there are eight stations of Royal Jordanian are still pending for security reasons, namely Damascus, Aleppo, Mosul, Sanaa and Aden Tripoli, Benghazi and Misrata. He added that the five-year plan includes fleet modernization, medium and short-term, with the addition of four new aircraft if needed. The company is considering the best decision-making alternatives for the fleet to maintain work efficiency and small aircraft lifespan to reduce maintenance and operating costs.