Royal Jordanian logs JD24m net profit in 2007, marking a triple increase over 2006

RJ President/CEO and Vice Chairman of the board Samer Majali said that the net profits after taxes amounted to JD20.4m, compared to JD6.1m in 2006.

The return on equity (ROE) was JD0.24 against JD0.085 in 2006.

Majali stressed that one of the main reasons for the positive results is the substantial rise in the operational revenues, which reached JD543 million last year, against JD447 million in 2006, marking an increase of 21.5%. The gross profit of JD33m means an increase of 154% over 2006, when it was JD13m.

Majali added that the total assets of the company increased from JD267m in 2006 to JD327m in 2007, an increase of 22.4%. The shareholders' equity also rose from JD88.7m to JD109.1m, a rise of 23%.

Majali said that the rise in the operational revenues experienced by the company was due to growth in the number of passengers RJ planes transported last year, when Royal Jordanian joined the global airline alliance - oneworld. The number of passengers reached 2.4 million, marking an increase of 18% over 2006. Additionally, the seat factor went up from 67% in 2006 to 71% the following year. Flying hours increased by 14%, to reach 88,378, and the departures rose by 18%, to reach 30,244. Average aircraft utilization exceeded 10 hours per day.

His Excellency the chairman of RJ's Board of Directors, Nasser Lozi, expressed RJ's satisfaction with the growth for the fourth year running, particularly with last year's results. These results reflect the airline's ability to make the best use of available resources, despite their limitations, in light of the global steep rise in fuel prices. He pointed out that the fuel bill the company paid last year amounted to JD165m, compared to JD141m in 2006.

Lozi expressed appreciation for the efforts of RJ management and employees, responsible for attaining these positive results, and for their keenness to increase revenues through improved services and modern aircraft. All RJ staff members seek to control expenditures in the various areas not affecting the level of service offered passengers.

He pointed out that the airline applied some state-of-the-art IT systems during the last two years, such as electronic ticketing, Internet booking, self-service check-in at the airport and revenue management. Moreover, the airline undertook extensive marketing activities to enhance its market share in various areas of the world.

RJ's general assembly will hold its first meeting at the end of this month, following the transfer of 71% of its shares to the private sector.