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FINANCIAL NEWS
RJ profits decrease to $92.5m by September-end
26 Oct 2010
(MENAFN) Nasser Lozi, Chairman of Royal Jordanian (RJ) said that the airline?s net profit reached $92.5million in the first three quarters of this year as opposed to $103.7 million in the same period in 2009, Jordan Times reported.
RJ President and CEO, Hussein Dabbas blamed the decrease in gross profits to the rise of operational costs by 19.5 percent, from $532.6 million in the first three quarters of the previous year to $635.7 million this year.
However, despite the challenges facing the air transport industry regionally and internationally, such as the sharp competition and its direct effect on the drop in the yield per passenger, operation revenues increased by 14.6 percent in 2010, stated Lozi.
Moreover, this year witnessed a rise in fuel prices whereas the fuel bill the airline paid in the first three quarters of this year was $212 million compared to the $155.4 million bill paid during the same period of last year, the chairman said.
Despite the decline in profit figures, Dabbas confirmed that the airline expects a positive outlook for the end of this year reporting an increase in the number of flights by 9 percent.
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