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Ammon News - Chairman of Royal Jordanian (RJ) Sa'eed Darwazeh on Wednesday said the national carrier's performance in 2022 was "relatively good" across all operational aspects, despite significant challenges encountered by the airline.

Speaking at the opening of the company's annual general assembly, the RJ chairman cited several reasons why the flag carrier ended the past year on a sour note, despite making remarkable strides in operational business.

According to Darwazeh, the pandemic's long stay until the first quarter of 2022, its repercussions, rising global fuel prices, and the Ukraine-Russia war were major culprits behind the losses.

He highlighted that the surge in fuel prices caused the company to bleed out a whopping JD98 million dinars. This was a result of the average fuel prices skyrocketing by 69 percent, especially in the Kingdom, compared to the prices at foreign stations. The chairman noted that fuel costs form 50 percent of RJ's total variable operating costs.

He explicated that, in order to offset a portion of the pandemic-induced losses - which accounted for 67 percent of the cumulative losses - the government furnished the company with a sum of JD70 million, as payments imputed towards the capital increase.

Darwazah further asserted that the company is persistently examining, alongside the chief stakeholder - the Jordanian government - alternatives to rectify the shortfall in equity and foster capital augmentation, commensurate with the company's prospective business volume and regulatory mandates.

The CEO and Vice Chairman of the Board of Directors, Samer Majali, alluded to the company's drive in 2022 to realize operational and financial progress, propel the company forward, and enhance various performance metrics, including seat occupancy rates and cost efficiencies.

Majali remarked that the operating revenues scaled up by 72 percent, surmounting JD613 million, in comparison to JD357 million in 2021. Moreover, the company transported a greater number of passengers in 2022, amounting to 3 million, indicating a staggering 92 percent increase vis-à-vis 1.6 million in the antecedent year.

Majali emphasized that RJ is presently pursuing a strategy that buttresses the national endeavors aimed at boosting Jordan's stature as a tourist hub. He further added that the company has initiated a growth blueprint and an all-encompassing audit of the network of destinations it serves, offering greater leeway in the network segments and augmenting flight frequency.

The company's CEO also cited the introduction of an additional 20 A320neo aircraft as well as its move to modernize its short-haul service fleet by adding 10 brand-new Embraer E-Jet E2 airliners.

During the online meeting, the General Assembly approved the Board of Directors' report on the company's business and results for the fiscal year 2022, the 2023 plan, the auditors' report, the annual balance sheet, and the profit and loss statement for the ending fiscal year.