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This year's 1Q RJ losses decline by JD1 million compared to 2016

Apr 26, 2016 - Amman


The decrease in losses happened even though revenues during the first quarter of the current year also went down 5% in the first three months of this year, to JD140.4 million from JD148.4 million in the first three months of 2015. The lower revenues are attributed to the reduced tickets prices resulting from lower oil prices.

As RJ stressed on different occasions, air traffic is seasonal in nature. Normally airlines, RJ included, see a remarkable regression in the number of travellers in the first and last quarters of the year (the winter season), whereas they witness active traffic in the second quarter and reaching the peak season in the third quarter, during the summer and holidays, which means improved seat factor. Improved seat factor enables airlines to achieve better financial results at the end of the year, as was the case with RJ last year.

RJ registered JD21 million net profits at the end of 2015, while the net profits for the first nine months of the same year were JD27 million. The lower traffic in the last three months of 2015 brought down the final financial figure.

RJ looks forward to achieving net profits by improving its services and continuing the implementation of the five-year business plan it started in 2015.

The plan is based on a number of pillars that involve controlling costs, increasing revenues, reassessing the route network by studying the profitability of the routes and considering new markets.

The airline opened new destinations last year and this year; they are Tabuk, Najaf, Ankara, Jakarta and Guangzhou. It also shut down some routes for commercial reasons, including Delhi, Mumbai, Colombo, Lagos, Accra, Milano, Alexandria, Al Ain and Kiev.

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