Royal Jordanian’s Board of Administrators permitted the corporate’s monetary outcomes for the primary half of 2024, reflecting an enchancment within the firm’s operational efficiency indicators. Royal Jordanian additionally continued to implement the expansion technique by its fleet modernization program, route community enlargement and its service enhancements.
RJ Vice Chairman/CEO Samer Majali mentioned that the battle on Gaza has posed main challenges to the air transportation and tourism trade, adversely affecting the airline’s operational efficiency. This sector stands as essentially the most affected inside Jordan’s economic system, with a decline of seven.9% within the vacationers’ quantity and a marked drop in tourism earnings, in keeping with preliminary knowledge issued by the Central Financial institution for the primary half of this yr in comparison with the identical interval in 2023.
The corporate’s monetary outcomes for the primary half of this yr confirmed a lack of JD27 million, in comparison with a lack of JD17 million for a similar interval in 2023, whereas working revenues went down from JD348 million to JD338 million for the comparability interval. The RJ fleet transported 1.757 million passengers within the first six months of this yr. Majali indicated that first-half outcomes are typically weaker for airways, and that the present outcomes are line with the price range estimates and even higher for this era of the yr, and near the outcomes of the primary half of 2023, regardless of the difficult situations.
Majali additional defined that the battle on Gaza negatively impacted journey, given the truth that Royal Jordanian is a key service for inbound tourism to Jordan. The battle has led to a substantial drop in bookings- significantly from the Palestinian market, the West Financial institution and the 48- Arabs. RJ has seen a decline within the demand for journey and vacationer teams, contemplating that Jordan is a gateway to the Levant area, as proof of which is the exit of international airways from working to Jordan and decreasing their operations. Because the battle continues, it’s anticipated that the variety of passengers could additional decline, probably affecting the monetary outcomes for the third quarter and the outcomes of the second half of this yr.
Majali defined that Royal Jordanian exerts nice efforts to cut back price and management bills and open new routes that entice vacationers to compensate for the decline within the variety of travellers from conventional markets. RJ additionally cooperates with native authorities to mission Jordan to the world with innovation; all of this goals to take care of the constructive outcomes and income achieved by the corporate throughout the first 9 months of 2023, however sadly the airline was unable to mitigate the losses, leading to numbers that didn’t meet the specified consequence.
Majali confused the necessity for joint efforts on a nationwide degree to help the air transportation and tourism sector in Jordan, with the contribution of each the private and non-private sectors. These efforts are wanted to market Jordan, carry in additional vacationers, and suggest pressing options to this disaster, which resembles that of COVID 19, however with a regional influence on the Jordanian tourism sector, as a result of geographical location that’s near the battle space.
He identified that Royal Jordanian at all times stands by the folks of Gaza and offers them with all wanted help throughout the accessible capabilities by its social accountability applications, together with donations to move humanitarian support, and offering particular or complimentary freighting charges to humanitarian organizations to ship donations and medical provides to these in want.
Majali highlighted that the corporate made vital progress in its fleet modernization plan throughout the first half of this yr. This included the addition of 4 new Embraer E2 regional jets, and the introduction of a brand new Airbus 321 freighter. One other Embraer plane is anticipated to hitch the fleet in August, together with three new A320 neo plane on the finish of this yr, coinciding with the retirement of various plane in that interval. Royal Jordanian additionally launched a number of key locations, together with London Stansted, Manchester, seasonal service to Al-Ula in Saudi Arabia and Paphos. Furthermore, the airline plans to broaden into extra markets later this yr, with additional bulletins to observe.
