Royal Jordanian swings into profit despite revenue drop

Royal Jordanian this week reported a JOD25.5 million (US$35.99 million) net profit for the first nine months of the year, turning around the JOD3.8 million loss made last year.

Royal Jordanian achieved the positive result despite earning 16% in revenues, with only JOD449 million achieved in 2009, while the same nine months in 2008 recorded 532 million.

"Profits came as a result of the decrease in fuel expenses in the past nine months, by 50% of the fuel bill the airline paid during the comparison period in 2008," notes Hussein Dabbas, Royal Jordanian President and CEO, in a statement.

"The drop in revenues is due to the 3% decrease in the number of passengers using RJ aircraft and the 32% drop in uplifted cargo."

In a bid to stimulate travel during these economically challenging times, Royal Jordanian reduced fares, which resulted in yield dropping by some 14% in the January to September period.