The General Assembly of Royal Jordanian Airlines held today, Monday, 18.04.2022, its regular annual meeting, through electronic visual communication technology, chaired by Engineer Lama Qteishat, representatives of the Government Investment Management Company, Social Security Corporation , auditors. (Ernst & Young), and a group of shareholders and employees of the company.
During the meeting, the report of the Board of Directors on the business and the results of the company for fiscal year 2021, the future work plan for 2022, the auditors’ report, the annual balance sheet and the profit and loss account for the completed fiscal year were discussed, after the general assembly agreed on all these points.
Chairman of the Board of Directors, Ing. Saeed Darwazeh, in his speech at the inauguration of the meeting emphasized the position enjoyed by Royal Jordanian as an ancient national air carrier, which actively contributes to the advancement, rebirth and development of the country and Jordan’s connection with the rest of the world, appreciating patronage royal that enjoys Royal Jordanian, government support and care for it, as well as thanked the shareholders, appreciating their support and understanding of the situation the company went through over the past year.
He added that Royal Jordanian performance during 2021 was relatively good in all operational aspects, despite the great challenges faced by the company during the aforementioned year, which was nothing but a continuation of what 2020 proved for due to the Corona pandemic. and its direct impact on the air transport industry and the resulting restrictions placed on the movement of travel and its procedures, which in turn were reflected in the aircraft occupancy rate and travel ticket prices, which for consequently constitute the final results of the airline business in general.
Darwaza showed that Royal Jordanian was able to reduce net losses by 54% after tax for 2021, which amounted to 74.3 million dinars, compared to losses amounting to 161.1 million dinars for 2020, which is the beginning of a positive change in the company. March, showing that the company relied on several axes to improve its financial position, the most important of which were controlling operating costs and working to reduce them wherever possible, while maintaining the level of services provided by the company to its passengers, reducing all aspects of operating costs, reviewing contracts entered into between Royal Jordanian and various operational and logistics service providers within the Kingdom and at external stations; implementation of Protection orders and protection programs by the Social Insurance Institution in relation to the salaries and wages of the company’s employees.
On the other hand, Chief Executive Samer Majali said that the Royal Jordanian seeks with all its capabilities to continue to play its strategic role in the service of Jordan, appreciating the recent visit of His Majesty King Abdullah II Ibn Al Hussein to RJ and his confidence in the ability of the company. to overcome current challenges and turn them into opportunities as a key driver of national economic growth, especially in the tourism, transport and air transport sectors.
He explained that the company is taking corrective measures to restructure it in various aspects, as it is currently implementing an ambitious return-to-profit plan, which includes reviewing the line network, reducing operating costs, modernizing the fleet, improving of passenger services, maintaining a prominent position as a leading airline in the Arab Mashreq region, promoting Jordan and encouraging tourism. .
Al-Majali expressed his satisfaction with the improvement of financial results for the previous year and the halving of losses. The increase in total revenues realized by Royal Jordanian in 2021 was a positive indicator, as operating revenues increased by 213 million dinars per year 2020 to 357 million dinars for 2021, with an improvement rate of 68% .It is a figure that requires optimism that the employees of this company; Management and employees have clear skills and abilities to achieve tangible achievements through the new approach to promotion and sales operations, and to increase revenue from added revenue in all its aspects. In 2021, the Royal Jordanian aircraft carried about 1.6 million passengers, compared to 752,000 passengers last year.
He added that Royal Jordanian is reviewing its airline network based on economic feasibility studies from the operation, in line with the company’s objectives to provide better service to its passengers and to launch flights to new stations in the markets. promising, which will increase the number of destinations from 35 to 60 stations over the next five years and replace all aircraft with its old fleet of modern aircraft, doubling its number and achieving a more profitable business in the field of freight transport, both on passenger and freight aircraft.
Majali indicated that Royal Jordanian, as Jordan’s national carrier, continues to improve Jordan’s position on the global tourism map and to promote it as a tourist destination with the relevant authorities through travel offers and integrated services it offers to tourists from all over the world. .