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RJ sees 13 per cent improvement in financial results

RJ losses drop $1.4m in Q1

AMMAN, April 27, 2016

National carrier Royal Jordanian (RJ) has reported a 13 per cent improvement in its first quarter financial results as losses dropped JD1 million ($1.4 million) to JD 7.3 million ($10.2 million) from JD8.3 million ($11.6 million) in the same period last year.

RJ saw losses decline in Q1 despite revenues dipping 5 per cent to JD140.4 million ($197.4 million) in the first three months of the year from JD148.4 million ($208.7 million) in Q1 2015.

The lower revenues are attributed to the reduced tickets prices resulting from lower oil prices.

Normally airlines see a remarkable regression in the number of travellers in the first and last quarters of the year (the winter season), whereas they witness active traffic in the second quarter and reaching the peak season in the third quarter, during the summer and holidays, which means improved seat factor. Improved seat factor enables airlines to achieve better financial results at the end of the year, as was the case with RJ last year, the airline said in a statement.

RJ registered JD21 million ($29.5 million) net profits at the end of 2015, while the net profits for the first nine months of the same year were JD27 million ($37.9 million). The lower traffic in the last three months of 2015 brought down the final financial figure.

RJ looks forward to achieving net profits by improving its services and continuing the implementation of the five-year business plan it started in 2015.

The plan is based on a number of pillars that involve controlling costs, increasing revenues, reassessing the route network by studying the profitability of the routes and considering new markets.

The airline opened new destinations last year and this year which include Tabuk (Saudi Arabia), Najaf (Iraq), Ankara (Turkey), Jakarta (Indonesia) and Guangzhou (China). It also shut down some routes for commercial reasons, including Delhi and Mumbai (India), Colombo (Sri Lanka), Lagos (Nigeria), Accra (Ghana), Milano (Italy), Alexandria (Egypt), Al Ain (UAE) and Kiev (Ukraine). - TradeArabia News Service
 




Tags: loss | RJ | Q1 |

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