RJ logs JD21.7 million in net profits in 2005

The results showed that in 2005, RJ posted net profits of JD21.7 million before deducting a profit share to be distributed to the employees. The net profits of 2005 stand against JD17.2 million in 2004, marking an increase of 25% and 33% above budget estimates.

President/CEO Samer Majali expressed satisfaction about the positive results RJ achieved for the second consecutive year despite complex challenges faced by the airline, most considerable the steep increase in fuel prices during last year, sharp competition in the air transport industry and the general instability in the Middle East.

Majali said the revenues rose from JD345 million in 2004 to JD387 in 2005, an increase of 12% over 2004 and 6% over the budget estimates. The figures also indicate that the company's expenses increased by 11% over 2004 and 7% over the budget allocated, from JD312 million in 2004 to JD352 million in 2005.

These results positively reflected the return on revenues, which grew from 5% in 2004 to 5.5% in 2005, said Majali. This increase represents 25% over the budget assessment that expected the return on revenues to not exceed 4.4%.

The president attributed the growth of revenues and net profits to the improved services the airline offers its passengers in the air and on ground through its well-trained, highly qualified workforce. To this can be added the modernization of the fleet and the policy of cost control Royal Jordanian is following, and a better on-time performance that reached 84% in 2005, compared to 83% in 2004.

Majali said that RJ aircraft carried 1,821,329 passengers in 2005, posting an increase of 4.9% over the number of passengers transported in 2004. The seat factor reached 70%, similar to that of 2004. Aircraft departures went up by 8.5%, counting 20,777 departures; flying hours increased by 4.4%, to reach 68,883 hours, and mileage by 3.3%, to reach around 45,500 kilometers.

The positive results will play a major role in supporting the government's attempt to forge ahead with the company's privatization process and place a portion of Royal Jordanian shares on the market by the end of the year. Moreover, the new aircraft in the RJ's fleet will increase the company's value and boost its competitive standing in the international air transport industry, said Majali.