Royal Jordanian (RJ) has posted a net profit JD10.2 million ($14.3 million) for the first nine months of the year, boosted by the increase in the number of passengers and the seat load factor in the third quarter of 2018.

Net profit for the period January-September went up 87 per cent compared to the JD5.4 million ($7.6 million) in the first nine months of 2017.

The results were announced during a session held on October 29, chaired by Said Darwazeh, in the presence of RJ president/CEO Stefan Pichler.

“Royal Jordanian has dealt with the huge rise in fuel prices during the current year by increasing the number of passengers and the seat load factor on all its route network by offering continuous sales promos, which contributed to increased demand all year round from travellers who care to invest in the attractive fares and are now planning their journeys early,” said Pichler.

The paid fuel bill in the first nine months of this year increased by 32 per cent over 2017, amounting to JD122 million ($172 million) in 2018 compared to JD92 million ($129.7 million) paid in 2017. Therefore, operating costs of the company grew from JD406 million ($572.6 million) in the first nine months of 2017 to JD430 million ($606.4 million) this year, a 6 per cent growth.

The company's operating revenues increased from JD472 million ($665.7 million) in the first nine months of 2017 to JD510 million ($719.3 million) in the comparison period of 2018, an 8 per cent growth rate; it recorded a 22 per cent higher gross profit, which increased from JD65.7 million ($92.6 million) in the first nine months of 2017 to JD80 million ($112.8 million) in the same period this year.

In the first nine months, the number of passengers grew by 4 per cent and the seat load factor grew by 6 per cent, increasing from 71 per cent in the first nine months of 2017 to 74 per cent in the corresponding period of 2018.

In terms of air cargo, Pichler said the sector is also witnessing positive operating and financial results.

“The uplifted cargo carried by the company increased by 16 per cent in the third quarter of this year and as a result, cargo revenues increased by 10 per cent. In the first nine months of this year the uplifted cargo increased by 14 per cent and the cargo revenue by 12 per cent over to the same period of 2017," he said.

In Q3, RJ's net profit was registered at JD22.9 million ($32.2 million), down 28 per cent compared to the JD31.8 million ($44.8 million) recorded for the same period of 2017, primarily due to the significant increase in fuel prices.

The fuel bill paid by the company between July and September of this year went up 43 per cent, reaching JD47.3 million ($66.7 million); during the same months last year the cost reached JD33 million ($46.5 million).

The airline revenues in the third quarter increased by 2 per cent, to JD198 million ($279.2 million), against JD194 million ($273.6 million) for the comparison period of 2017, while operating costs increased by 9 per cent, from JD140 million ($197.4 million) in the third quarter of last year to JD153 million ($215.7 million) for the same period this year. As a result, the gross profit recorded by the company in this period declined 16 per cent, from JD53.8 million ($75.8 million) in the third quarter of 2017 to JD45 million ($63.4 million) in the same period of 2018.

Commenting on the financial and operating results of the company, Pichler said: “The total number of passengers carried on board RJ increased by 7 per cent in the third quarter of this year, bringing the seat load factor from 75 per cent in the third quarter of 2017 to 77 per cent in the same period of this year, a 2 per cent increase."

Pichler stressed that the airline’s turnaround plan, launched in the last quarter of 2017, is being followed and has been successfully achieving the set goals. - TradeArabia News Service