RJ logs JD28.6 million net profit in 2009

Royal Jordanian Board of Directors chaired by Nasser Lozi issued on Feb.14 the audited financial statements for 2009. The results show that in 2009, RJ generated net profits of JD28.6 million, in spite of the challenges that the air transport industry faced last year, most significantly the global economic crisis and its impact on passenger travel and cargo.

Board of Directors chairman Nasser Lozi expressed the board’s satisfaction with the positive results, achieved despite the challenges the airline is facing, saying that they reflect the airline’s ability to make the best use of available resources, in spite of their limitations, and to continue its fleet modernization program and automate and facilitate travel procedures.

President/CEO Hussein Dabbas said that the operational revenues decreased from JD700 million in 2008 to JD598 million achieved in 2009, a decline of 15%, which is due to the impact of the global economic crisis on travel and tourism in the world and also to a remarkable regression in cargo.

The operational costs went down by 19.1%, from JD675 million in 2008 to JD546.8 million in 2009, basically due to the decrease in fuel prices globally, leading to a decline in the fuel bill of the company by 47% compared to 2008 to become JD136 million in 2009. Additionally, the cost control policy and the capacity management played key roles in achieving positive results.  

Dabbas added that the gross profits for 2009 amounted to JD52.1 million against JD24.9 million last year, marking a 109% increase. Consequently, the airline attained net profits of JD28.6 million, against net losses of JD24.7 million experienced in 2008.

He also indicated that shareholders equity in the company increased from JD78 million to JD106 million at the end of 2009, and the share book value became JD1.26 compared to JD.92 at the end of 2008.

Dabbas said that in 2009, the oneworld carrier (RJ) transported 2.7 million passengers , 1% less than in 2008, and the passenger yield decreased by 13% 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% each, whereas air freighting declined by 27% compared to 2008.

Dabbas expressed optimism about the future of the company and its potential to achieve better results this year which is expected to see increased travel and tourism at global level.

He pointed out that the international civil aviation, in general, and Royal Jordanian, in particular, are facing big challenges, including the competition among regional carriers in regard of the increase in the offered seats and reduction in ticket prices, thus affecting the revenues that the company will register in the coming period.

He stressed that in 2010 RJ will focus on facing the new challenges, particularly in light of the annulment of the route exclusivity in February this year, which RJ enjoyed on all its regular routes. Efforts should be exerted to maintain and boost the position of RJ as a leading company in the local and regional air transportation.

He pointed out that the airline has applied state-of-the-art IT systems during the last two years, such as electronic ticketing, Internet booking, self-service check-in at the airport and revenue management. Moreover, the airline undertook extensive marketing activities to enhance its market share in various regions of the world.

The company’s ambitious plans are in line with King Abdullah’s directives to make Jordan a main gateway to the Middle East. 
Source = Royal Jordanian
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