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70 million dinars government support for “Royal Jordanian” and the bleeding of losses continues

Amman Today

publish date 2022-11-01 21:52:20

The financial statements of Royal Jordanian showed that it received government support in the amount of 70 million dinars by a decision of the Council of Ministers on May 18, 2022; To raise the company’s capital.

According to the financial data reviewed by the Kingdom, which was revealed by a company disclosure to Royal Jordanian, the government support was provided in two tranches, with a value of 35 million dinars each. The first tranche was received by the property in May 2022, and the second tranche in August 2022.

accumulated losses

The financial statements also showed an increase in accumulated losses for the first nine months of this year; To reach 392.7 million dinars, its accumulated losses exceed its capital.

The data showed an increase in expenses in the item of selling and marketing from 20 million dinars last year, to 30 million dinars until the end of the first nine months of 2022.

On Monday, Royal Jordanian said that net losses during the first 9 months of this year amounted to 71 million dinars, compared to 54 million dinars recorded in the same period last year.

In its statement, Royal Jordanian said that the increase in net losses was due to a noticeable increase in fuel prices, as the company incurred fuel price differences for the mentioned period at a value of 81 million dinars.

The company obtained a letter of assurance from the Ministry of Finance, representing the government; Where the government looks positively to continue to support the company in the future.

governmental support

In response to the Kingdom’s inquiries, the CEO of Royal Jordanian Company, Samer Al-Majali, said that the government pumped 70 million dinars; To raise the company’s capital.

Majali stressed that the government support came as part of what is required to face the losses incurred by Royal Jordanian during the Corona pandemic, noting that this government support contributed to reducing a quarter of the loss suffered by the property.

Majali indicated that there is a talk with the government to provide non-financial support to improve the company’s capital as well.

He added that “Royal Jordanian has restructured itself to take care of incoming tourism to the Kingdom, and has introduced marketing programs in cooperation with the Tourism Promotion Authority in the countries of Europe and the Arab Gulf, and the United States, America, indicating that the marketing programs obtained results and a positive response, and was able to attract 600,000 travelers to Jordan in The first 5 months of the year.

Al-Majali indicated that booking expenses after the increase in the number of passengers also increased.

operational costs

Al-Majali stressed that the biggest challenge facing the company now is the rise in fuel prices, which exceeded 80% of last year’s levels. It constitutes 48% of the operating cost of aircraft, indicating that fuel prices in Jordan are the highest for Royal Jordanian in the world, despite the fact that Jordan is the center of the Royal Jordanian movement.

Sustainability Program

Majali stressed that the social security assistance through the “Estidama” program significantly reduced the company’s losses and contributed to the continuation of jobs in Royal Jordanian.

The financial statements of the Royal Jordanian Company showed that social security contributed 40% of the employees’ salaries, with a maximum range between 500 and 1000 dinars per employee per month.

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Jordan News

Source : اخبار الاردن

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