Senate discusses RJ financial woes, steps taken to mitigate Covid-19 repercussions

Shahennews

The Senate’s Financial and Economic Committee, headed by Jamal Sarayreh met on Wednesday, with Royal Jordanian (RJ) President/CEO, Saeed Darwazeh, to discuss the national carrier’s conditions and the challenges it is battling in light of the Covid-19 pandemic.
Speaking during the meeting, Sarayreh praised the government support for the airline to continue its growth and development, and maintain its contribution to support the economic, tourism, cultural, and trade activities.
In turn, Darwazeh indicated that the airline has posted net profits totaling JD10.4 million at the end of 2019, estimating its losses at JD152 million to end of 2020.
The RJ’s cumulative deficit would range between JD180 to JD220 million by end of 2021, and JD140 million were covered so far, Darwazeh forecast.
Referring to the RJ’s operational conditions amid the Covid-19 crisis, Darwazeh said the number of passengers has dropped, due to the travel restrictions worldwide, adding the airline’s passenger revenues decreased by JD389 million, compared to 2019.
With the virus spread globally, airports across the world were shut down, and accordingly the RJ has operated 15 aircrafts out of 25, he noted.
Darwaza said the airline has paid JD40 million as the value of returned tickets during the last period, in addition to JD16 million in fixed costs in salaries and rental of airplanes, and also incurred an amount of JD3.5 million in monthly payments to pay off loans and their interests.
The RJ has implemented measures to mitigate consequences of the pandemic’s impact on capital, human resources management and reduced costs and operational processes, which provided cash at an amount exceeding JD150 million and axed costs by JD15 million, according to Darwazeh.
//Petra// AG