Royal Jordanian CEO Discusses Impact of Gaza Conflict and Airbus Delivery Delays on Airline

6 months ago Editor

Royal Jordanian is grappling with a series of challenges that have put a strain on its operations and financial performance. The airline, headquartered in Amman, has faced a significant downturn in bookings attributed to the prolonged Israel-Gaza conflict and has encountered delays in receiving new aircraft from Airbus, impacting its fleet modernization plans.

According to Samer Majali, the airline’s CEO, the Israel-Gaza conflict has led to operational difficulties and financial losses, particularly in the first quarter of 2024. During this period, Royal Jordanian experienced a notable decline in travel bookings, exacerbated by reduced European tourist interest due to Ramadan and concerns stemming from the ongoing conflict. Majali expressed frustration over the perception that countries neighboring Israel and Palestine are all seen as a single conflict zone, which has negatively affected tourism across the region.

Palestinians perform the first Friday prayers of Ramadan near the ruins of a mosque in Rafah, southern Gaza. Reuters

In response to the decrease in European travelers, Royal Jordanian has been actively seeking to attract more transit passengers and Umrah pilgrims, although the success of these efforts has been limited.

Despite these challenges, Majali remains cautiously optimistic about the airline’s prospects for the latter part of 2024, citing increasing international pressure to end the conflict and improve conditions in the region.

In addition to the impact of the Israel-Gaza conflict, Royal Jordanian has also been hampered by delays in receiving aircraft deliveries from Airbus. These delays, particularly affecting the A320neo and A321neo models, have disrupted the airline’s plans to modernize its fleet.

photo Source: thenationalnews.com

Majali highlighted the complexities of extending lease agreements on existing aircraft to cover for delays in receiving new planes, which has resulted in significant cost burdens for the airline. However, he noted that there has been minimal compensation provided by manufacturers to offset these challenges.

Looking ahead, Royal Jordanian aims to break even or achieve a small profit in 2024, contingent upon improvements in geopolitical conditions. The airline is also in the early stages of its fleet renewal program, having recently received new Embraer E195-E2 and Airbus A320neo aircraft, with further deliveries planned in the coming years.

Additionally, Royal Jordanian is exploring opportunities to expand its cargo operations, having recently acquired an A321 freighter and considering further investments in freighter aircraft based on market demand.