Royal Jordanian’s financial and operating results for the first half of 2019, show significantly improved key performance indicators and a growth in the gross profit and net operating profit, progress achieved because of the measures taken as stipulated in the turnaround plan that the company has been implementing since the second half of 2017.
In the first six months of 2019, Royal Jordanian flights saw a 1% increase in the number of passengers, compared to the same period of 2018, and a seat load factor that grew from 72.8% during the first six months of 2018 to 73.1%.
Royal Jordanian’s operating revenues grew from JD 312.1 million in the first half of 2018 to JD 316.3 million in the comparison period of this year, a 1% increase, while the company was able to reduce operating costs by 5%, going down from JD 277.4 million in the first six months of last year to JD 264 million for the same period of 2019.
The increase in revenues, and the lower costs and 5% lower fuel bill led to registering JD 3.4 million profit from continuing operations against JD 11.1 million loss for the comparison period. Royal Jordanian also recorded a JD 52.2 million gross profit against JD 34.8 million in the first half of 2018, a 50% increase. Thus, the airline registered a JD 1.5 million net profit after tax in the first half of this year, against a net loss of JD 12.7 million in the same period of 2018.
Online sales grew from JD 39.8 million in the first half of 2018 to JD 40.2 million in the same period this year. Sales of travel extras increased by 17%, from JD 8.5 million to JD 10 million, and the revenue of the loyalty program grew by 44%, whereas the Cost per Available Seat-Kilometer (CASK) decreased by 3%.
Source: Royal Jordanian