RJ revenues up by 31% in the first quarter of this year

President/CEO Samer Majali said that revenues during these three months increased from JD107m in 2007 to JD140m this year.

The growth reflects the surge in the number of passengers RJ transported during this period, reaching 17% more than last year, and the increase in the seat factor, from 66% to 68%.

Majali added that the final financial results demonstrate remarkable improvement; losses amounted to JD2,975,000, marking a 61% decline in losses as estimated in the budget for this period, and a 22% drop vis-à-vis last year's losses. RJ logged JD20.4m net profits last year.

Majali also expressed satisfaction with the improved financial indicators of the first quarter despite the losses that are usually compensated by the other months of the year, particularly the summer season.

Summer months register record numbers of passengers, and seat reservations for the months ahead show a big increase in the seat factor, due to the great demand to travel aboard Royal Jordanian to all regional and international destinations.

The airline's competitiveness is clearly acknowledged regionally and internationally, said Majali, pointing out that RJ has been introducing premium services to its passengers, new aircraft and IT systems meant to ease travel.

A major improvement is the extensive route network that RJ serves directly from Amman or indirectly though the oneworld airline alliance.

The CEO said that the airline is proceeding with the fleet modernization program that started two years ago.

It has already modernized the medium- and short-haul fleet; the long-haul fleet modernization program will be affected by the recent Boeing announcement that it delays delivery dates of Boeing 787 Dreamliner to different dates corresponding to the dates of purchase orders of the various international airlines.

He said that RJ placed an order in May last year for four Boeing 787s, and intends to take an additional eight Boeing 787s on lease from international leasing companies.

Majali added that the first B787 scheduled to join the fleet in 2010 will be delayed by one-and-a-half to two-and-a-half years as a result of Boeing's decision, considering that different airlines ordered 900 B787s.

He also stressed that RJ, Boeing and some leasing companies are negotiating to find alternative aircraft to serve the route network during the delay time and ensure that the company continues to implement its plans regarding fleet modernization.