Royal Jordanian’s 2021 financial statements approved | Company

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Ammon News – Royal Jordanian held its ordinary general meeting virtually on Monday to discuss the board’s report on 2021 financial results and business outlook for 2022, as well as the auditors’ report, budget, profit and loss.

Members of the General Assembly approved all items under discussion, according to a statement from RJ.

The meeting was chaired by RJ Board Chairman Said Darwazeh; Also present at the virtual meeting were board members, RJ VP/CEO Samer Majali, Deputy Comptroller General of Companies Luma Quteishat, representatives from the government investment management company and the company social security, the auditor of RJ Ernst and Young and certain shareholders.

Addressing shareholders, Darwazeh said RJ, the national carrier, is one of the “cornerstones of the national economy and the backbone of the local air transport sector”.

He expressed his gratitude for the royal support that RJ receives as well as government support, which empowers the business. He also thanked shareholders for their “understanding of the nature and scale of the challenges the company has faced over the past year.”

Darwazeh said the airline’s performance was relatively good in 2021, despite the great challenges it faced due to the COVID pandemic and its immense impact on the airline industry. The pandemic has imposed major restrictions on travel, affected load factors and ticket prices, and ultimately financial results.

In 2021, the company was able to reduce net losses after tax to JD74.3 million, which is 54% less than the loss of JD161.1 million in 2020, representing a positive transformation in the company’s journey. business, Darwazeh said.

He added that RJ has reduced all operational expenses and reviewed its contracts with service providers in Jordan and at ports of call, reviewed aircraft leases and enforced defense orders and protection programs provided. by the Social Security Corporation regarding employee wages.

CEO Samer Majali said RJ will make great efforts and continue to play its strategic role in serving Jordan.

He welcomed the recent visit of His Majesty King Abdullah to RJ. His Majesty expressed his confidence in the company’s ability to overcome the current challenges and turn them into opportunities as the airline is a major engine of growth for the national economy, in particular for the tourism, transport sectors and air freight.

He said the company has taken several corrective measures and will restructure in different areas. It is implementing a plan based on the following pillars: reduction of operational costs, review of the route network, modernization of the fleet and improvement of the services offered to passengers. The vision is to make RJ a leading carrier in the Levant, project Jordan around the world and encourage tourism in the country.

Majali said the total revenue generated by RJ in 2021 is a positive indicator. They went from 213 million JD in 2020 to 357 million JD in 2021, i.e. a growth of 68%. This figure is a reason for the company to be optimistic, as it proves that RJ has the potential to achieve remarkable achievements using promotions and sales offers that are sure to increase the company’s ancillary revenue. company.

RJ planes carried 1.6 million JD passengers in 2021, compared to 752,000 carried the previous year.

Majali added that RJ is constantly reviewing its route network based on economic feasibility studies and in line with the company’s goal of providing the best service to its customers.

RJ undertakes to resume operations to the destinations to which it suspended flights and to adjust its frequencies to the stations currently served.

The company will also serve new destinations in promising markets, as it intends to increase the number of stations served from 35 to 60 over the next five years. The company also plans to renew its aircraft fleet to serve short and medium-haul flights, and to be more profitable in the cargo and passenger aircraft sector.

Majali pointed out that Royal Jordanian continues to strive to improve Jordan’s position on the world tourist map and promote it as a tourist destination in collaboration with relevant authorities, through sales and service promotions. packages provided to tourists from all over the world.

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