Royal Jordanian posts net loss in 2016
Royal Jordanian reported a 2016 net loss of JD24.6m ($34.5m), a sharp reversal from 2015’s net profit of JD16m. The carrier cited hefty provisions for foreign exchange losses for the negative results. Royal Jordanian also was affected by reduced yields over the year, as competition led to lower ticket prices. Full-year revenues declined 9% year-over-year to JD598.3m as a result of increased competition from both full-service airlines and LCCs. The company’s fare levels dropped 11%. Chairman Said Darwazeh said the main reason for the loss was the need to make provision of JD19.5m for the devaluation of the Sudanese pound and Egyptian pound. A further provision of JD3.5m had been required to cover the cost of voluntary staff release, he said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-03/oneworld/royal-jordanian-posts-net-loss-in-2016
https://portal.staralliance.com/cms/logo.png
Royal Jordanian posts net loss in 2016
Royal Jordanian reported a 2016 net loss of JD24.6m ($34.5m), a sharp reversal from 2015’s net profit of JD16m. The carrier cited hefty provisions for foreign exchange losses for the negative results. Royal Jordanian also was affected by reduced yields over the year, as competition led to lower ticket prices. Full-year revenues declined 9% year-over-year to JD598.3m as a result of increased competition from both full-service airlines and LCCs. The company’s fare levels dropped 11%. Chairman Said Darwazeh said the main reason for the loss was the need to make provision of JD19.5m for the devaluation of the Sudanese pound and Egyptian pound. A further provision of JD3.5m had been required to cover the cost of voluntary staff release, he said. <br/>
