Royal Jordanian posts 2018 loss on Royal Wings shutdown, exchange rates

Royal Jordanian reported a 2018 net loss of JD5.9m ($8.3m), compared to a net profit of JD274,000 in the previous year, with the shutdown of its Royal Wings subsidiary and shifts in exchange rates contributing to the weak performance, the airline said. While revenue grew 8% year-over-year to JD653.3 million and net operating profit rose 47% to JD19m, operating costs rose 7% to JD562.9m. Expenses were led by a 28% increase in average fuel price, which amounted to JD159.3m. The Amman-based carrier ceased operations of charter subsidiary Royal Wings in November 2018, incurring a loss from discontinued operations of JD3.9m. In addition, differences in exchange rates, primarily the Sudanese pound, contributed to the net loss, the airline said. During 2018 Royal Jordanian also canceled a contract to purchase a Boeing 787, at a loss of JD1.4m. The carrier transported 3.3m passengers on scheduled flights in 2018, up 4%, while capacity rose 3%. Load factor improved 2.5 points to 73.8%, the airline’s highest rate in 10 years.<br/>