At a press conference held on October 31 at Fairmont Hotel, Amman, Royal Jordanian President/CEO Stefan Pichler reported a successful third quarter for 2017 for the carrier marked by a net profit of JD31.8 million. This is 146% increase compared to the same period in 2016 when they registered only JD12.9 million.
According to Pichler the reasons behind the good results lie in the significantly improved commercial performance and the hard work of the management team to overcome the lack of expertise and experience. One of the key changes made was in the pricing policy of the carrier, that started offering affordable fares, which enhanced the sales performance.
In addition to that the number of passengers also increased by 5% compared to last year’s third quarter to reach 955,000.
The revenues for 3Q17 were JD202 million – an 8% increase from the JD187 million in 2016. Royal Jordanian reports a decrease in the expenses by 3% compared to the previous reporting period – JD148 million in 2017, against JD152.3 million spent in 2016.
The net income reported by the company for the first nine months of 2017 is JD5.4 million, which is a stunning 300% increase compared to the first nine months of 2016 when they registered a net loss of JD2.7 million. This financial year also started poorly for the airline, however managed to break even in June and end up profitable by the end of 3Q17.