Royal Jordanian attributes 2016 loss to currency devaluation, staff compensation provisions

Royal Jordanian chairman Said Darwazeh attributed (30-Apr-2017) the carrier's JOD24.6 million (USD34.7 million) net loss in 2016 mainly to a JOD19.5 million (USD27.5 million) provision for devaluation of the Egyptian pound and Sudanese pound, due to the Sudanese Government's decision to impose incentive fees on currency transfers outside Sudan and the Egyptian Government's decision to float the pound in 2016. The result was also affected by a JOD3.5 million (USD4.9 million) provision for voluntary staff release compensation. Operating revenue decreased 9.1% year-on-year to JOD598.3 million (USD843.6 million) due to growing competition from full service airlines and LCCs and an 11% drop in airfares. Operating costs decreased 6% to JOD527.7 million (USD744 million), supporting a JOD5 million (USD7 million) net operating profit. The airline directly contributes about 3% to Jordan's GDP. [more - original PR]