Royal Jordanian has disclosed that it achieved a JD27.5m ($38.8m) net profit for Q3, taking the profit at the nine-month mark to JD10.8m. This performance contrasts with the corresponding net losses of JD861,000 and JD71.6m during the previous year. Over the quarter the company transported 1.1m passengers, an increase on the same period in 2022, while also managing to hike load factor to 79.1%. The airline generated Q3 revenues of JD233m, up 16%. CE Samer Majali says the positive figures are the result of a new strategy for the flag-carrier which focuses on projecting Jordan as a tourism destination and Amman as a gateway to the Levant region. But Majali had told FlightGlobal, during the Arab Air Carriers Organization conference in Riyadh, that the carrier faced loss of revenues in the fourth quarter, route disruption, and higher fuel costs arising from the Israel-Gaza conflict. “[The airline] has to take all necessary measures to reduce the effects as much as possible, by determining and reducing the offered seat capacity and controlling expenses, in an attempt to maintain the results of the third quarter and reach the break-even point by the end of this year,” the carrier says. Royal Jordanian states that, as of 30 September, its accumulated losses of JD389m exceeded its capital, while its current liabilities exceeded current assets by JD179m. Jordanian corporate law stipulates that accumulated losses amounting to more than 75% of capital must result in liquidate, and the airline subsequently agreed a financial restructuring in early October to address the issue.<br/>
oneworld
Shareholders in Australian airline Qantas have voted against the company’s executive pay and bonus scheme, with 83% of investors refusing to back the advisory remuneration report. “It is clear there’s been a substantial loss of trust in the national carrier and we understand why,” outgoing chair Richard Goyder told shareholders at the company’s annual meeting on Friday after what he called an “overwhelming” vote against the pay policy. Under Australia’s “two strikes” rule, a vote can be held to dissolve the board if shareholders reject a company’s remuneration policy for two consecutive years. The vote against the company’s pay policy at its annual meeting in Melbourne caps a turbulent three months for the airline. Qantas suffered a customer services meltdown at the start of the year but nonetheless reported underlying pre-tax profit in the year ending in June of A$2.5b ($1.6b) and a healthy outlook in August. The company was sued by the Australian consumer regulator a week after reporting the results for alleged “false, misleading and deceptive conduct”. The Australian Competition and Consumer Commission accused the carrier of selling tickets for thousands of so-called ghost flights that it had already cancelled. A week later, a court upheld a ruling that Qantas had illegally sacked 1,700 workers during the pandemic, a move that cut costs for the company but also resulted in a collapse in its customer service quality as ground-staff including baggage handlers were outsourced. The company known as the “Flying Kangaroo” now faces a potential bill of hundreds of millions of dollars in penalties and compensation for those workers. Its long-serving CE Alan Joyce stepped down earlier than expected, and its chair and two board members have said they will also leave. Qantas shares have lost almost a fifth of their value since August. The Qantas board apologised to investors at the annual meeting and promised to restore the airline’s brand status and customer service reputation. It also highlighted that it had cut executive bonuses and incentive payments for the year, withholding all payments until there was clarity on the cost arising from the legal cases.<br/>
In the past three months, Qantas has been found guilty of illegally sacking 1,700 workers, been accused of offering “ghost flights” to its customers and lost 20% of its stock market value. So when investors were asked at the airline’s annual meeting on Friday whether they would back a pay package for its executives, the result was a resounding no. In a snub to Australia’s flag carrier, 83% of shareholders voted against the proposal. The fiery meeting at the Melbourne Convention and Exhibition Centre has underlined the immensity of the task facing the new board and management team at Qantas to restore its reputation. Andrew Charlton, a former Qantas executive and managing director of consultancy Aviation Advocacy, said Australians used to be proud of Qantas. “If you take that loyalty for granted . . . that starts to chip away. The seemingly ceaseless scandals and service lapses mean that now, Qantas has even lost Australia,” said Charlton. The carrier, known as the “Flying Kangaroo”, fell out of favour with unions, regulators, customers and now shareholders during the 15-year tenure of Alan Joyce, who stepped down early two months ago. Joyce’s steely focus on the carrier’s balance sheet meant that the airline exited the pandemic in good financial health, with Qantas chair Richard Goyder praising the former chief for navigating the company through “the most challenging and tumultuous period in the airline’s history” in May. In August, Qantas reported a A$2.5b (US$1.6b) underlying pre-tax profit for the year ending in June and announced a A$500m share buyback to reward shareholders for their support.<br/>