Royal Jordanian Airlines records $19mn loss in Q1 as operating costs increase

Royal Jordanian Airlines records $19mn loss in Q1 as operating costs increase
Royal Jordanian Airlines records $19mn loss in Q1 as operating costs increase. / bne IntelliNews
By bna Cairo bureau April 29, 2026

Royal Jordanian Airlines (ASE: RJAL) reported a 15% rise in operating revenue but more than doubled its net loss in the first quarter of 2026, with airspace rerouting following the US-Iran war driving up flight hours and fuel costs, Al Mamlaka News reported on April 29.

Total operating revenue rose to JOD195.5mn ($276mn), up from JOD169.8mn in the same period last year, the airline said in its financial results.

Passenger numbers grew 5% to around 992,000 travellers, while flight hours rose 19%. Operating costs climbed 12% to JOD176.5mn ($249mn) compared with the first quarter of 2025. The company posted a net loss of JOD13.6mn ($19.2mn), more than double the JOD6mn loss recorded a year earlier.

Chief executive Samer Majali said exceptional circumstances, including geopolitical tensions since late February, had negatively impacted performance. Rerouting flights to avoid conflict zones had led to longer journey times and increased fuel consumption and insurance costs, he said.

The airline expects continued pressure in the second quarter due to high fuel prices and a decline in passenger demand. The carrier is considering cancelling or consolidating routes to maintain efficiency.

Royal Jordanian said it remained committed to its strategic plan, including fleet expansion and the launch of new destinations.

The Jordanian flag carrier operates from its hub at Queen Alia International Airport in Amman and is a member of the Oneworld global airline alliance. The company is in the middle of a fleet modernisation programme that is expected to take its operating fleet from 25 aircraft at the start of 2025 to 35 by the end of 2026 and 41 by 2028, with the average aircraft age more than halving from 9.6 years to four years.

The renewal includes 12 Airbus A320neos delivered to date out of an order for 20 firm aircraft, eight Embraer E195-E2s introduced from 2024, the refurbishment of seven Boeing 787-8s, and the planned introduction of nine Boeing 787-9s starting in early 2026, six directly from Boeing and three from lessor AerCap.

Majali has previously outlined plans to use the additional widebody capacity to expand transatlantic services and add Asian frequencies, with Dallas-Fort Worth among new North American routes added this year.

The Jordanian aviation sector has been particularly exposed to disruption from the US-Iran war that began on February 28, with the country's airspace lying directly between Iran, Iraq, Syria, Israel and Saudi Arabia.

Amman is also among the most expensive hubs for jet fuel in the regional network, with the input historically accounting for around 42% of Royal Jordanian's operating expenses, according to Majali.

The April 7 ceasefire has so far failed to deliver a sustained recovery in passenger demand or full normalisation of regional airspace use. Iranian airspace remains subject to varying restrictions, and Iraqi airspace transit has not fully recovered.

Royal Jordanian had moved back into profitability under previous chief executive Stefan Pichler before the pandemic, and Majali, a 44-year industry veteran who returned to the carrier in 2021, has positioned the airline as a Levant connector solving the regional connectivity problem alongside global carriers including Emirates, Qatar Airways and Turkish Airlines, syndication partner Emerging Travel previously reported.

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