Faced with a significant rise in fuel costs, Royal Jordanian reported a third-quarter (3Q) net profit decline of 28% to JD22.9 million ($32.3 million) compared to the year-ago period.

The Jordanian flag carrier’s fuel bill increased 43% to JD41.3 million year-over-year (YOY).

To deal with fuel costs, the company has been offering “continuous sales promos,” president and CEO Stefan Pichler said.

The marketing efforts contributed to a 7% 3Q increase in the number of passengers carried, resulting in a two percentage point boost in load factor to 77%, he said.

Revenues grew 2% YOY to JD198 million, while operating costs rose by 9% to JD153 million.

For the first nine months, passenger numbers grew 4%, while load factor increased from 71% to 74% YOY.

The company reported a JD10.2 million net profit for the nine-month period, an 87% increase. Nine-month operating revenues grew 8% to JD510 million, and operating costs grew 6% to JD430 million.

In November 2017, the oneworld carrier instituted a five-year turnaround plan to improve the company’s financial position. 

Kurt Hofmann, hofmann.aviation@netway.at