JEDDAH, 5 January 2006 — Saudi Arabian Airlines is beginning 2006 after very high earnings and profits in 2005. The airline witnessed an unprecedented increase in the number of passengers in 2005. The airline’s business results for the year were equally impressive. Most major international airlines had a difficult year due to skyrocketing oil prices; these were responsible for estimated industry losses of $7.4 billion, according to IATA (International Air Transport Association).
Saudi Arabian Airlines’ earnings went up from SR13.5 billion ($360 million) in 2004 to SR15.4 billion ($410 million) in 2005. Most of the increase came from the growth in the number of Haj and Umrah travelers and in the number of international passengers and cargo shipments. Saudi Arabian Airlines has experienced an increase in its earnings for the past five years. The airline’s earnings jumped from the range of SR11 billion ($293 million) in 2000 and 2001 to the level of SR13 billion ($346 million) for the years 2002, 2003 and 2004. Finally, in 2005, the airline broke the SR15 billion barrier.
The airline also reported a SR60 million increase in its profits in 2005. The airline’s profits increased from SR440 million ($117 million) in 2004 to SR500 million ($133 million) in 2005. Beginning in 2002, Saudi Arabian Airlines made profits for the first time in its operating history. The airline operated for long time under the profitability line and in 2002 it reported a profit of SR117 million ($31 million) for the first time. The airline’s profit has increased steadily since 2002 and it achieved an almost five-fold increase in 2005. The airline’s operational profitability for the period 2002-2005 is remarkable, considering that its losses in 1998 were SR1.4 billion ($373 million).
Saudia also scored another first in 2005 with the number of passengers carried in a single year. In 2004, the airline carried 15.7 million passengers while in 2005, the number exceeded 16 million. In December 2005, the airline celebrated the transport of 16 million passengers during the year. The airline carried more than 112 million passengers between 1998 and December 2005. Between 2003 and 2005, the airline experienced an average annual increase of one million passengers and in 2006, it expects to carry 17 million passengers. In 2005, Saudia carried over one million Haj travelers and 2 million Umrah visitors to the Kingdom.