JD5.7 million net profit and 15 per cent increase in revenues in 1st half of 2005 for RJ

President and CEO Samer Majali said that the company released these figures after they were carefully reviewed by auditors. He pointed out that the revenues for this period reached JD187 million, showing a 15 percent increase over the revenues of the first half of 2004, and 2 percent higher than the budget estimates.

He added that Royal Jordanian carried 800,000 passengers - 4 percent more than during the first half of last year. Furthermore, the on-time performance rose to 88.9 percent during the first half of this year from 86.2 percent during the same period of 2004.

August 2005 registered a seat factor of 84.3 percent, a new record for the company, compared to 81.3 percent during August of last year. The airline carried 196,000 passengers during August this year.

Majali attributed the operational and financial progress to the improved RJ's ground and in-flight services, increased on-time performance, as well as serious investment in human resources. Royal Jordanian initiated the campaign "Change Begins With Me", which trains more than 1,000 employees in order to improve the level of services offered passengers and thus meet their expectations.

He said that the first half of this year would have seen better results had it not been for the steep increase in fuel prices. Royal Jordanian had to cope with a 12 percent increase in fuel prices on March 8, 2005, and 47.4 percent on July 9, 2005.

Majali said that the surge in fuel prices, which reached $70 per barrel, will affect the budget and the net profits of Royal Jordanian by the end of the year. Net profits for 2005 are estimated to match last years' results, of around JD17 million.

He also said that RJ employees are working hard to help the airline absorb the increase in fuel prices by reducing costs and, consequently, witness increased revenues. He pointed out that Royal Jordanian paid $96.5 million for fuel locally and internationally in 2004; the total fuel bill will reach $128 million by the end of this year, an increase over the $107 million allotted in the airline's budget for fuel. At the current fuel prices, it is estimated that the airline will end up paying $150 million for fuel in 2006.