Royal Jordanian incurs $55.5 million first-half 2011 loss

Royal Jordanian reported a first-half 2011 net loss of JOD39.2 million ($55.5 million), deepened from a JOD7.7 million deficit in the year-ago period, owing to political and social unrest in the region, higher fuel prices and the debt crisis in several European countries.

Revenue inched up 3.5% year-over-year to JOD303.7 million on a marginal increase in passengers carried from 1.327 million to 1.399 million. The airline was forced to cancel 677 flights and merged another 80 in the period.

But July was markedly better, according to President and CEO Hussein Dabbas. RJ carried 373,000 passengers last month, up 13.3% on the year-ago period. “This is the highest [number of boardings] registered by the company in one month since its establishment 48 years ago,” Dabbas said. Average seat factor increased to 81% in July from 79% in July 2010. The carrier's half-year fuel bill heightened 51% year-over-year to JOD30.5 million. 

The airline said it was “doubling its efforts this summer season to revive traffic, increase the load factor and offer passengers superior ground and air services to overcome the negative outcome of the first six months of 2011.”