RJ records JD9.6 million net income in 2010
Wednesday, 23 February 2011
Amman, Royal Jordanian Board of Directors chaired by Nasser Lozi on Feb. 23, 2011, issued the audited financial statement for 2010. The results show that RJ made JD9.6 million net profits, a 66% decline compared to 2009, when it registered JD28.6 million net profits.

Lozi said that the company's financial and operational figures saw a remarkable growth last year, particularly in terms of revenues resulted from the growth in the number of passengers and departures.

The airline's fuel bill, which increased from JD150 million in 2009 to JD203 million last year, a 35% increase, was a major contributor to the decline in the net profits.

Lozi expressed the board's satisfaction with the performance of the company year on year, despite the challenges the regional and international air transport sector is facing – chief among them the increase in oil prices and the sharp competition – and with the way the airline used the resources available.

He also pointed out last year's improvement in ground and air services, the fleet modernization and route expansion, besides automating the travel procedures which makes it easier for passengers to embark on a trip on board RJ.

President/CEO Hussein Dabbas said that RJ was able to increase its market share and the number of carried passengers in 2010 by 13% over 2009, despite the rising competition from a number of Arab and international carriers operating in Jordan. As a result, the operational revenues went up by 14% to reach JD685 million against the JD598 million achieved in 2009.  

He added that the fuel bill led to an increase in operational expenses from JD504 million in 2009 to JD603 million in 2010, a 20% increase, directly affecting the decline in the net income last year. The gross profit, he said, went down in 2010 to around JD82 million, that is 13%.

Dabbas noted that as a result of retaining earnings in 2009, the owners' equity grew by 9%, from JD106 million in 2009 to JD116 million in 2010. Moreover, the company’s assets increased by 2%, from JD376 million in 2009 to JD385 million last year.

At operational level, the RJ president mentioned that the airline transported 3 million passengers last year, marking a 13% increase over 2009, as a result of a 4% increase in the seat factor, from 68% to 71%. The number of departures also grew by 9%, to reach 39,000 against 36,000 operated in 2009. Additionally, the flying hours and the uplifted cargo grew by 7% and 31% respectively.

According to Dabbas, the last year’s challenges will still be faced by RJ, as well as by the global air transport industry, particularly the fuel prices that are soaring above the airlines' expectations and budgets. The fierce competition among the airlines operating in the Middle East and the Arab Gulf also play a big role in the number of offered seats and the ticket prices.

He mentioned that RJ will continue to exert its utmost efforts to tackle the challenges; most important, it will follow an effective cost-control policy, without affecting the level of services. The airline will continue enhancing its competitiveness and increasing its share of international market through better services, a modern fleet and automated travel procedures, said Dabbas.

Source: Press Release (Royal Jordanian)