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Royal Jordanian aiming for 21% rise in revenue for 2010; Kenya Airways gains; Jazeera Airways down

Analysis

Royal Jordanian reported a 17% year-on-year decline in profits in 1Q2010, to USD9.6 million, due to higher fuel prices. Fuel costs rose 15% for the period, with an average price of USD80 per barrel.

Summary
  • Royal Jordanian's profits declined by 17% in 1Q2010 due to higher fuel prices, despite a 21% increase in passenger numbers.
  • Jazeera Airways and Kuwait National Airways experienced a drop in shares, while Air Arabia moved lower in the Middle East.
  • Kenya Airways was the only carrier in Africa to witness a rise in shares during the session.
  • Comair's shares remained flat, while 1time Holdings' shares fell in South Africa.
  • The Centre for Asia Pacific Aviation (CAPA) has launched a new strategic business information service covering the Middle East and Africa aviation markets.
  • The service, Middle East-Africa Airline Daily, provides comprehensive coverage of fleets, routes, financials, traffic, and other significant developments in the region.

The decline in profit came despite a 21% increase in passenger numbers during the quarter. RJ reported a net profit of USD40.3 million in 2009, compared to a net loss of USD34.8 million in 2008. The carrier is targeting a 12% increase in revenue this year. Its shares rose 0.6% yesterday.

Also in the Middle East, Jazeera Airways' (-4.6%) shares dropped, while Kuwait National Airways (-1.9%) was also down, as Kuwait's Stock Exchange (-0.6%) slipped. Air Arabia (-0.3%) also moved lower.

In Africa, Kenya Airways (+0.9%) was the only carrier to witness a rise in shares during the session, despite a 0.5% decline in Kenya's Nairobi Stock Exchange.

Comair was flat, while 1time Holdings' (-1.8%) shares fell. South Africa's JSE index ended trading flat.

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Selected African and Middle Eastern airlines share price movements (% change): 03-May-2010

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