FINANCIAL NEWS

Royal Jordanian swings to loss in H1

31 Jul 2010

(MENAFN) Jordan’s national carrier Royal Jordanian (RJ) swung to a net loss of $10.2 million in the first half from a net profit of $10.9 million in the same period last year, hit by a rise in operating costs, The Jordan Times reported.

RJ posted $6.5 million of profits in the second quarter after a $16.6 million loss in the first. The company did not provide any further details.

Jordan sold 71 percent of RJ to international and local investors in an initial public offering (IPO) at the end of 2007, making RJ the first Arab state carrier to be privatised.

Foreign investors, including the Beirut-based investment firm controlled by the Mikati family, which acquired a 19.5 percent shareholding, now own at least 40 percent of the carrier.

Local investors, including the government, which still retains a 29 percent stake, have a majority shareholding that exceeds 51 percent to ensure the carrier maintains its right to fly under bilateral accords

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