Royal Jordanian Airlines edged into a third-quarter operating profit, with a surplus of JD5.3 million ($7.4 million), but net losses for the quarter and the nine-month period were worse than last year’s figures.
The flag-carrier generated revenues of JD452 million for the nine months to 30 September – including JD363 million from passenger transport and JD27 million from cargo.
But it also recorded expenditure of JD468 million, and Royal Jordanian turned in a net loss for the period of JD71.6 million, deeper than the JD54 million of the previous year, according to the accounts filed to the Amman stock exchange.
It attributes the higher net loss to the “steep increase in fuel prices”. The airline says the average price of fuel increased by 82% compared with last year.
Chief executive Samer Majali says the fuel expenditure accounts for almost 40% of the carrier’s operating costs.
He says the rising prices present “one more challenge” to the airline.
Royal Jordanian’s current liabilities exceed its current assets by JD163 million, but the airline has continued to receive government support to relieve its financial pressures.
In May the ministry of finance was authorised to increase the carrier’s capital by JD70 million. The airline received JD35 million in May and the balance in August.
