6-May-2010 12:48 PM

Royal Jordanian to generate a 'slight' profit in 2010

Royal Jordanian CEO, Hussein Dabbas, stated the may only generate “slight” profit in 2010 due to an increase in fuel costs (Bloomberg, 04-May-2010). The carrier is targeting a 13% increase in passenger numbers in 2010 and a 70% load factor.

Royal Jordanian:
We are seeing a major increase in the fuel prices. During the past month or more we’ve been having around over USD85-86 a barrel of oil and that’s affected our cost structure a bit. In revenue we hope we will be able to cover the costs and make a slight profit. We’re seeing a resurgence in passengers. But the cost of fuel has also gone up, we’re paying almost double what we paid last year. That’s why 2010 will be a difficult but promising year. We hope the economy will pick up. The signs we’re seeing are encouraging,” Hussein Dabbas, CEO. Source: Bloomberg, 04-May-2010.