Amman: Royal Jordanian’s Board of Directors has ratified the airline’s financial outcomes for H1 2024, revealing advancements in operational metrics amidst considerable external adversities.
Per the Wednesday press release, RJ continues to drive its strategic initiatives, focusing on fleet renewal, route network expansion, and service enhancements. Vice Chairman and CEO Samer Majali highlighted the Gaza war as a formidable challenge for the aviation and tourism sectors, citing a 7.9% drop in tourist arrivals and a significant downturn in tourism revenue, based on preliminary Central Bank data.
The financials for H1 2024 reflect a loss of JD 27 million, an increase from the JD 17 million loss recorded in the same period last year. Operating revenues declined from JD 348 million to JD 338 million, with RJ transporting 1.757 million passengers during this timeframe.
Majali noted that first-half results are traditionally weak for airlines. Nonetheless, RJ’s performance surpassed budgetary projections, despite
the war’s impacts, closely mirroring H1 2023 results.
The ongoing conflict has disrupted travel patterns, with Royal Jordanian, a key player in inbound tourism, experiencing substantial booking declines, particularly from the West Bank and the 1948 Arab population. The conflict has also led to a decrease in group travel demand and prompted some foreign airlines to reduce or cease operations to Jordan.
Majali projected continued passenger declines due to the prolonged conflict, potentially affecting Q3 financial results and overall H2 performance.
In response, Royal Jordanian has implemented rigorous cost-cutting measures, controlled expenses, and opened new routes to mitigate the downturn from traditional markets.
Collaborative efforts with local entities aim to innovatively market Jordan, striving to maintain the positive trajectory seen in the first nine months of 2023. Despite these efforts, the airline has not fully offset the adverse impacts, resulting in underperformance relative to targets.
Majali
called for national efforts to bolster Jordan’s aviation and tourism sectors, attract travelers, and devise urgent solutions akin to those enacted during the COVID-19 crisis, given the regional geopolitical landscape.
Royal Jordanian reaffirmed its commitment to supporting Gaza through community responsibility initiatives, logistical aid, and facilitating humanitarian transport.
In H1 2024, RJ marked significant progress in its fleet renewal agenda, adding four new Embraer aircraft for short-haul and regional routes and introducing a new Airbus A321PF for cargo operations. The airline anticipates receiving another Embraer aircraft in August and three new Airbus A320neo aircraft by year-end, while phasing out older aircraft.
Royal Jordanian also launched critical routes to London Stansted and Manchester in the UK and seasonal flights to Al-Ula in Saudi Arabia and Paphos in Cyprus. Further market expansions are slated for later this year, with details forthcoming.
Source: Jordan News Agency