Royal Jordanian Airlines has disclosed that the Israeli-Gaza conflict resulted in a near-JD40 million ($56 million) impact on revenues in the fourth quarter of last year.
The flag-carrier turned in a full-year net loss of JD8.7 million, despite efforts to reduce expenditure and cut costs, says chief executive Samer Majali.
But the figure was nevertheless an improvement on the JD78.9 million loss recorded in 2022, and it did manage to achieve a full-year operating profit of JD3.1 million.
Royal Jordanian had been optimistic over its full-year performance at the nine-month mark because it had turned around heavy losses to generate a net profit of JD10.8 million.
The airline, which is 86%-owned by the Jordanian government, had been expecting this profit to increase by the end of the year.
But Majali states that the airline was “greatly affected” by the Gaza conflict, which resulted in a drop in demand for travel to Jordan.
Total revenues for the year reached JD733 million, up 20%, as passenger numbers rose 18%. But cargo revenues were down by one-third, to JD23.8 million.
Chairman Said Darwazeh says the airline has demonstrated that it is capable of overcoming “several challenges and difficulties” over the past few years.
“The resulting hardships made the company exert utmost efforts to maintain its prestigious position among competing airlines and continue to work according to international best practices,” he states.
Royal Jordanian, he adds, has proceeded with the “largest investment decision in its history” with the modernisation of its fleet – acquiring Boeing 787-9s, Airbus A320neos and Embraer E2s – taking the number of aircraft to 41 by the end of 2028.
Darwazeh says the carrier introduced new services to Bahrain, Algiers, Brussels, Stockholm and Dusseldorf last year as it seeks to bring its network up to 60 international destinations. It currently serves about 45 cities.
The airline’s expansion has also included wholly acquiring Jordan Airline and Simulation Training.
Royal Jordanian completed a capital restructuring procedure during the fourth quarter, with a capital increase of 240 million shares, achieved through issuing shares to the government and taking a 90% ownership of Jordan Airports Company.
This restructuring has also involved writing off nearly JD201 million in accumulated losses from the company’s balance, reducing them to JD184 million.
