Royal Jordanian confident of government backing as losses persist

Royal Jordanian Airlines believes the Jordanian government will continue to support the flag-carrier as it strives to restore profitability. The airline turned in a JD29.7m ($41.9m) pre-tax loss for Q1 to 31 March, compared with a JD36.4m loss for the same period in 2021. Revenues of JD98.7m included JD72.4m from passenger transport and JD8.6m from cargo. Royal Jordanian’s current liabilities exceeded its current assets by JD150m at the end of the quarter, and its accumulated losses of nearly JD351m exceeded the company’s capital. But the airline has been receiving assistance from the government through capital increases – two tranches, each of JD25m, were received in 2020 and 2021 – and procedures for the latest hike of JD50m were completed in December. Royal Jordanian says it has received assurances from the government, through the finance ministry, that it is “in favour” of continuing to support the airline’s future operations, as it restructures its business.<br/>