Flag carrier Royal Jordanian was able to reduce its half-year net loss by 52 per cent, down to JD12.7 million ($17.9 million) from JD26.3 million ($37 million) incurred in H1 2017, following airfare cuts that boosted revenue growth.

Despite a higher fuel bill and increase in operational expenses in the first half of the year, the airline was able to improve revenues from JD284 million ($400.5 million) in the first half of 2017 to JD317 million ($447 million) in the same period of 2018 - an increase of 12 per cent. This was a result of non-stop promotions in the first half of 2018, offering enticing airfares, which generated a 6 per cent increase in passenger numbers travelling during H1.

The growing number of passengers also lifted the seat load factor by 4.4 points in the comparison period, from 68.4 per cent to 72.8 per cent.

RJ President/CEO Stefan Pichler said that as a result of these positive KPIs, RJ achieved a gross profit of JD33.5 million ($47.2 million) compared to JD12.8 million (18 million) in the first half of 2017, a 161 per cent increase. He said that the performance indicators of the second quarter of this year were good, leading to a net loss reduction by more than half in the first six months of the year.

He also noted that the third quarter of this year is still witnessing an increased demand on booking and travel on board RJ aircraft to all the destinations on its route network due to the summer season and the dynamism of tourism to and from Jordan, in addition to the upcoming Hajj season. - TradeArabia News Service