Royal Jordanian (RJ) held its virtual Annual General Meeting (AGM) on April 29, 2024. Key figures like Chairman Said Darwazeh and CEO Samer Majali addressed shareholders.
The meeting highlighted the airline’s achievements in 2023 and ambitious plans for the future.
Celebrating Heritage and Overcoming Challenges
Darwazeh emphasized RJ’s vital role in Jordan’s economy and air travel sector. He acknowledged the support of the Royal family and government, crucial for the airline’s success.
He highlighted 60 years of service and RJ’s ability to overcome challenges, including the pandemic, regional conflicts, and economic difficulties.
This resilience allowed RJ to maintain its competitive edge and adhere to international best practices.
Future Investment: Fleet Modernization and Expansion
A major announcement was the largest investment decision in RJ’s history: a fleet modernization and expansion program.
By 2028, the fleet will grow to 41 aircraft, including modern E2 regional jets, Airbus A320neo family aircraft, and fuel-efficient Boeing 787-9s.
This will enhance services, reduce costs, and improve passenger satisfaction. The airline will expand its route network to 60 destinations. New services have already been launched to Bahrain, Algiers, Brussels, Stockholm, and Düsseldorf in 2023.
Financial Performance and Growth Strategy
Majali presented RJ’s 2023 financial results, showcasing a 20% increase in operating revenue to JD733.3 million compared to 2022.
Passenger numbers also rose by 18%, primarily from the US, Europe, and the Levant. This led to a 3.6 million passenger total and a seat load factor of 77.9%.
While RJ achieved net profits of JD10.8 million in the first nine months of 2023 (compared to a loss in 2022), the Gaza conflict impacted the fourth quarter.
Despite cost-cutting efforts, a net loss of JD8.7 million was recorded in 2023 (an improvement from 2022’s loss).
Capital Restructuring and Strategic Acquisitions
Majali discussed the completion of capital restructuring in late 2023. This involved reducing accumulated losses and mandatory reserves, while increasing capital. This will be achieved through share ownership in Jordan Airports Company and direct capital injections.
The airline’s growth plan aims to solidify its regional leadership and increase revenue through economic, operational, and investment activities.
This includes strategic acquisitions like acquiring 100% of Jordan Airline and Simulation Training (JATS) and a 90% stake in Jordan Airports Company.
These moves strengthen relationships with supporting companies and enhance their investment vision.
Supporting Jordan’s Growth: Tourism and Cargo
Royal Jordanian is committed to supporting Jordan’s national goals. The airline aligns its strategy with the Economic Modernization Vision’s “Destination Jordan” initiative, which leverages Jordan’s rich cultural, historical, and ecological heritage to promote tourism.
RJ plays a key role in developing Jordan’s tourism and cargo sectors, contributing significantly to the country’s GDP. The modernization of the air cargo warehouse further strengthens this commitment.
By focusing on growth, strategic investment, and national development, Royal Jordanian is positioned for a bright future, continuing to serve as Jordan’s national carrier and a vital contributor to the country’s economy.
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