On May 14, Royal Jordanian said that it posted a 2006 net profit before deducting "taxes and staff incentives" of JOD7.4 million (US$10.4 million), its third consecutive profitable year but down 64.8% from the record JOD21 million earned in 2005 before distributing a profit share to staff.

The airline said hostilities in the region during 2006 dampened tourism and increases in fuel prices went unmatched by a rise in ticket prices because it was "keen on easing travel expenses on passengers." Revenue rose 8% to JOD447 million from JOD413 million in 2005. Operating profit fell 69% to JOD13 million from JOD42 million.

President and CEO Samer Majali said he was satisfied with the result, although he admitted earnings were lower than expected. Passengers carried increased 11.1% to 2 million from 1.8 million in 2005 while load factor decreased 2 points to 67%. In the first quarter ended March 31, passengers carried rose 13% to 474,000.

The Jordanian government is expected to announce soon the completion of the airline's privatization, which involves selling 74% of shares to the private sector while 51% of the capital remains under Jordanian ownership.