RJ sees 8pc increase in October revenue
Amman, November 23, 2011
Royal Jordanian has progressed in October in terms of number of passengers, frequency and flying hours, resulting in an 8 percent increase in revenues, compared to the same month last year, CEO Hussein Dabbas said.
Noticing all the company’s operational performance indicators achieved in October, Dabbas said that RJ’s operating revenues reached JD 60.2 million ($84.73 million) last month, compared to JD 55.7 million ($78.40 million) during the same month last year; this led to a rise in the operating profit, which reached JD18.8 million ($26.46 million), excluding fuel cost.
During the same month last year, the revenues stood at JD17.5 million ($24.63 million), marking a 7.1 percent increase, a statement from the company said.
The operating cost, excluding fuel cost, rose from JD38 million ($53.48 million) in October 2010 to JD41 million ($57.71 million) in October 2011 as a result of operational traffic growth and an increase in the number of frequencies and flying hours.
The continuous fluctuation of fuel prices was the major reason that prevented the airline from achieving a net profit in the mentioned month, Dabbas said.
He pointed out that the fuel bill paid by the company last month amounted to JD24.2 million ($34.06 million), while it had reached JD17 million ($23.93 million) in October 2010, marking an increase of JD7.2 million ($10.13 million), or 42 percent.
Dabbas also said that RJ suffered from a decline in tourism and travel to the region, particularly from Europe, due to the Arab Spring. At the same time, the airline has been suffering from soaring fuel prices since the beginning of this year.
The total fuel bill paid by the airline since the beginning of 2011 until the end of October amounted to JD246 million ($346.24), compared to JD 168 million ($236.46 million) in the same period of 2010, representing a 46.2 percent increase.
Royal Jordanian carried 263,000 passengers in the month of October, while it carried 250,000 passengers in the same month last year, marking a 5 percent increase, the statement said.
RJ aircraft also had 3,312 flights, compared to 3,159 flights during the same time last year, an increase of 4.8 percent, bringing the number of flying hours up to 9,776 compared to 9,122 flights in the comparison period, or an increase of 7.2 percent, it said. – TradeArabia News Service