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31/07/2017 - 19:05hs
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Royal Jordanian posts USD 37 million in losses

The Jordan-based carrier reported a negative result in the first half of this year. In June, however, it saw USD 2.1 million in net income.



Amman – Carrier Royal Jordanian posted net losses of 26.3 million JOD (USD 37 million) in the first half of the year. Jordan-based news agency Petra reported that the result was driven by seasonal fluctuations and a drop in average ticket price.

In June alone, however, the airline had a net income of 1.5 million JOD (USD 2.1 million), whereas in June 2016 it had incurred net losses to the tune of 2.1 million JOD (USD 2.9 million). This came despite a 27% increase in fuel expenditure year-on-year in June.

Stefan Pichler, the company’s president, has said that the losses in the first six months was the result of a significant drop in the prices of tickets due to the “tough” competition in the Gulf region. 

He said that revenues declined 1%, although the number of passengers increased 6%, with the average occupancy rate going from 62% in 2016’s first six months to 68% in the same period in 2017. Besides, operational costs were up 3% due to an increase of 15% with fuels costs in the first six months. 
However, the executive celebrated June’s result and said to be confident in the company’s recovery. 

*Translated by Gabriel Pomerancblum and Sérgio Kakitani

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