Royal Jordanian cost focus gets airline back in the black

The Royal Jordanian board chaired by Nasser Lozi approved financial results for the first nine months of 2009 showing net profits of JD25.5 million (US$36.2m), against JD3.8 million in net losses incurred during the same period of last year. The gross profit reached around JD40.7 million, against the JD21.5 million gross profits for the comparison period, marking an 89% increase.

The airline showed thus that it was capable of logging positive results despite the fact that operating revenues went down by 16%, from JD532 million in the first nine months of 2008 to JD449 million for the same period of 2009 due to the slump in passenger traffic because of the global economic crisis.

Speaking at a presentation in Amman today Dabbas said the airline had been focused on controlling costs. A reduction in fuel expenses in the past nine months, by 50% of the fuel bill the airline paid during the comparison period in 2008, made the major difference. Additionally, the airline exerted continuous efforts to reduce the operational costs by 20% and the available seat kilometers (ASKs) by 4% during this period.

Dabbas said there was a 3% decrease in the number of passengers using RJ aircraft and a 32% drop in uplifted cargo.

“We will spare no effort to control costs, increase revenues and open new markets to boost our presence regionally and internationally. Our vision is to become the airline of choice connecting Jordan and the Levant with the world,” he said