Fuel costs hit Royal Jordanian profits

03 November 2008
Royal Jordanian posted a $2.8m loss for the first nine months of 2008, despite a 34 per cent increase in operational revenue compared to 2007.

In its results for the third quarter of 2008, Jordan’s national carrier recorded a gross profit of JD24m ($33.9m) for the first nine months of 2008, but a JD2m net loss.

As with all airlines in 2008, the record cost of fuel during the first half of 2008 has wiped out other gains.

The airline registered a 34 per cent increase in operational revenues to the end of September, to JD533 million.

However, the fuel bill for the first three quarters of the year was JD221m, up 92 per cent on the equivalent period in 2007.

The company’s air freight revenues also grew by 20 per cent year-on-year, to JD32m.

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