Royal Jordanian (RJ), the national airline of Jordan, has reported a deeper yearly net loss of JD39.6 million ($55.9 million), hit by regional instability that led to the suspension of flights to some of its main destinations in the Middle East.

The company said the loss, which compared with a deficit of 38.8 million dinars ($54.7 million) the previous year, was due to instability in the region along with a drop in tourism, as well as competition from Gulf airlines which enjoy subsided fuel costs.

Lower fuel prices that slightly eased RJ's finances in 2014 were insufficient to offset the negative trends and a 3 per cent drop in passenger numbers, industry executives said.

RJ's growth strategy had focused on expanding flights to destinations in the region such as Iraq, Libya and Syria. But it flew to only 44 destinations last year, down from 60, mainly for security reasons.

A twice-weekly flight to the Iraqi city of Mosul for instance was suspended after Islamic State militants captured the city. Services to destinations in Libya were also severely disrupted, along with those to Yemen.

RJ has since 2012 suspended daily flights to Syria's northern city of Aleppo and the capital Damascus and avoided Syrian airspace on safety grounds, forcing its planes to make costly diversions, airline officials said.

RJ's loss last year came despite operating income rising to 42 million dinars ($59.2 million) from 33 million dinars ($46.5 million), the statement said.

The airline brought into service last year five new Boeing 787 Dreamliners as part of an original 11-plane order. It currently has a 25 plane fleet plus two cargo planes.

Jordan sold 71 per cent of RJ to international and local investors in an initial public offering at the end of 2007.

The government, which retains nearly 40 per cent, has pledged a plan to help deal with RJ's losses. But delays in approving a 50 million dinars ($70.5 million) capital injection by the government prompted the resignation of Chairman Nasser al-Lozi last year. - Reuters