Royal Jordanian holds virtual ordinary Annual General Meeting; 2022 financial statement endorsed


 The AGM discussed the board’s report on the financial results of 2022 and the business plan for 2023, as well as the auditors’ report, the budget, profits and losses.

AMMAN – RJ held its ordinary Annual General Meeting virtually on April 11, 2023. The meeting was headed by RJ Board of Directors Chairman Said Darwazeh; attending the virtual meeting were also board members, RJ Vice Chairman/CEO Samer Majali, Companies’ General Controller Deputy, representatives of the Government Investments Management Company, RJ accounts auditor Ernst and Young and some shareholders and RJ employees.

The AGM discussed the board’s report on the financial results of 2022 and the business plan for 2023, as well as the auditors’ report, the budget, profits and losses. The General Assembly members agreed to all the articles under discussion.

Addressing the shareholders, Darwazeh said that RJ as the national carrier of Jordan has a distinct position in the country. He expressed appreciation for the Royal support that RJ receives as well as for the support of the government that it has shown in 2022 especially due to the repercussions of the corona pandemic on the company’s business and results; as it is the largest shareholder in the company’s capital, it played a fundamental role in supporting and enabling it to continue to perform its vital role, giving it more development and growth opportunities that make it possible for it to continue carrying out its duty as a feeder of the national economy, an employer, and a leading contributor to serving the local community.

He added that RJ’s performance in 2022 was satisfactory at all operational levels, despite the great challenges that the company faced. There are several factors that led to the end of the past year with negative results, in spite of the significant improvement in the company’s operational business. These reasons include the repercussions of the pandemic that lasted until the end of Q1 of 2022, and the rise in fuel prices in global markets due to the war between Ukraine and Russia, which constitutes the main factor of the loss. RJ had to pay the fuel prices difference of JD98 million because the average price given to the company increased by 69%, particularly in Jordan, compared to prices of the outstations. The fuel made up 50% of RJ’s operating cost.

Darwazeh explained that to compensate part of the pandemic losses, which constituted 67% of the total accumulated losses, the government supported Royal Jordanian by paying an amount of JD 70 million to facilitate the increase in capital. The company’s management works continuously with the main shareholder, the Jordanian government, to find solutions to address the deficit in equity and to increase the company’s capital in a way that suits its future business and legal requirements.

Samer Majali said that in 2022, Royal Jordanian endeavored to achieve operational and financial growth, and to improve various performance indicators, including an increase in revenues and the seat factor, and reducing the overall operational expenses except for fuel prices, without touching on the quality of services provided to passengers.

Therefore, the results showed an increase in the company’s revenues from JD357 million in 2021 to JD612.9 million in 2022, a 72% growth. RJ fleet transported 3 million passengers last year compared to 1.6 million in 2021, 92% higher, and the seat load factor rose to 77% last year, marking an increase of 9%. This calls for optimism and acknowledging that the employees and the management of this company possess high abilities and capabilities to obtain tangible achievements despite the challenges and difficulties facing it.

Majali said that RJ is currently following a strategic plan, as part of comprehensive national efforts to increase tourist arrivals in the Kingdom. It started carrying out a growth plan and a comprehensive review of the network it serves, providing more flexibility and connectivity in the network segments, and increasing the frequency of flights to which the company operates. He also expressed satisfaction over the growth in the number of passengers and their frequent choice to travel with Royal Jordanian, including transit passengers. This increase is attributed to the improvement of air and ground services seen by the customers and at all touchpoints.

He also mentioned that in 2022 RJ chose to operationally lease 20 medium-range A320neo family aircraft, and 10 Embraer aircraft of two variants, E190-E2 and E195-E2. The first of the new aircraft will be received before the end of the year. At the end of his speech, he stressed on everyone's determination to work with all resources and capabilities towards the progress of Royal Jordanian.

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