2019 Q1 seasonal net loss cut by 62% to JD5.2 million compared to JD13.9 million in 2018 and JD26.3 million in 2017
In its session held on April 28, Royal Jordanian’s Board of Directors, presided by Chairman Said Darwazeh, endorsed the company’s audited financial results for the first quarter of 2019, when RJ registered the best first quarter result since RJ’s establishment. The first quarter each year is a time when usually most airlines register seasonal losses due to lower demand on travel.
Royal Jordanian figures show that the company's total revenue in the first quarter of this year went up by 3% compared to those of 2018; the company registered JD145.5 million revenue in 2019, against JD141.3 million in 2018. The operating cost went down from JD131.2 million in Q1 2018 to JD123.3 million in the same period of this year, down by 6%. The fuel bill also dropped by 5%.
As a result of the higher revenue and the cost reduction, the gross profit in Q1 of this year increased by 120% to become JD22.3 million; it was JD10.1 million in the first three months of 2018. This led to a drop in the net loss in the first quarter of 2019: JD5.2 million, compared to JD13.9 million in the same period of 2018 and JD26.3 million in 2017.
President/CEO Stefan Pichler said in a press conference held at Royal Jordanian’s headquarters: "We are pleased with the financial results that reflect the continuous effort to increase revenues and reduce operating costs year on year and month on month."
Pichler stressed that the main objective of the company is to maintain sustainable profitability, a foremost pillar of the turnaround plan launched at the end of 2017.
Pichler said that airlines, Royal Jordanian included, usually record losses during the first and last quarters of the year, due to lower demand on travel, unlike the active summer and holiday seasons, which correspond with the recovery period of the second and third quarters of the year.
He pointed out that Royal Jordanian results in Q1 of this year set a record: Royal Jordanian registered a 3% increase in revenues, 2% growth in passenger numbers, and a 62% reduction in net losses, compared to the same period of last year.
Pichler stressed that Royal Jordanian will continue to offer sales promotions throughout the year, to encourage travel and attract more travelers, while striving to provide the best air and ground services that would make travelers' journeys and connections easier on the RJ route network or on-board aircraft of the oneworld airline members or code-share partners.
Source: Royal Jordanian