RJ posts $2.1m net profit for H1

Flag carrier Royal Jordanian (RJ) registered a net profit of JD1.5 million ($2.1 million) in the first half of the year, against a net loss of JD12.7 million ($17.9 million) in H1 last year, president and CEO of RJ, Stefan Pichler, revealed during a press conference held on July 31.

During the conference, Pichler presented the airline's financial and operating results for the first half of 2019.

The results show significantly improved key performance indicators and a growth in the gross profit and net operating profit, progress achieved because of the measures taken as stipulated in the turnaround plan that the company has been implementing since the second half of 2017.

The CEO said that in the first six months of 2019, RJ saw a 1 per cent increase in the number of passengers, compared to the same period of 2018, and seat load factor rose up to  73.1 per cent from 72.8 per cent during the said period last year.

Pichler also said that the company's operating revenues grew from JD312.1 million ($440.1 million) in the first half of 2018 to JD316.3 million ($446.1 million) in H1 this year, a 1 per cent increase, while the company was able to reduce operating costs by 5 per cent, going down from JD277.4 million ($391.2 million) in the first six months of last year to JD264 million ($372.3 million) for the same period of 2019.

He pointed out that the increase in revenues, and the lower costs and 5 per cent lower fuel bill led to registering JD3.4 million ($4.7 million) profit from continuing operations against JD11.1 million ($15.6 million) loss for the comparison period. RJ also recorded a JD52.2 million ($73.6 million) gross profit against JD34.8 million ($49 million) in the first half of 2018, a 50 per cent increase.

Pichler attributed the improved results, year after year, to the hard work and dedication of all employees who endeavoured to reduce expenses and improve revenues, and to the company's enticing offers throughout the year, which proved attractive to travellers. "RJ staff also strove to improve ground and air services, enhance online sales of tickets and various other products and travel extras offered to travellers by RJ, in addition to improved services in air freight and incentives to members of the frequent flyer programme, he said.

Online sales grew from JD39.8 million ($56.1 million) in the first half of 2018 to JD40.2 million ($56.6 million) in the same period this year.

Moreover, sales of travel extras increased by 17 per cent, from JD8.5 million ($11.9 million) to JD10 million ($14.1 million), and the revenue of the loyalty programme grew by 44 per cent, whereas the cost per available seat-kilometre (CASK) decreased by 3 per cent, according to the CEO.

Pichler said that the company is currently witnessing high travel demand during the summer season for which it is operating hundreds of extra flights to cope with the increase.

In conclusion, the CEO voiced his optimism that RJ will end 2019 with net profits and will further enhance its competitive position. - TradeArabia News Service