AMMAN, Oct 26 (Reuters) - Royal Jordanian's nine-month net profit fell 23 percent due to tougher competition and a rise in fuel costs, the kingdom's state airline said on Tuesday.
Net profit of 19.6 million dinars ($27.6 million) was down from 25.5 million in the same period last year.
Chairman Nasser Lozi blamed the lower profitability on a 19.5 percent rise in operating expenses due to fuel costs, outpacing a 14.6 percent rise in revenues to 516 million dinars.
"These results were achieved despite challenges facing the global airline business, the most significant being sharp competition and its direct effect on the drop in the yield per passenger," Lozi said in a statement.
Fuel costs went up to 151 million dinars in the first nine months from 110 million in the same period last year.
Passenger numbers rose a healthy 15 percent to 2.3 million while cargo volume rose by 33 percent.
Jordan sold 71 percent of the airline in an initial public offering at the end of 2007.
Foreign investors -- including the Beirut-based investment firm controlled by the Mikati family, which acquired a 19.5 percent shareholding -- now own at least 40 percent of the carrier's capital.
Local investors, including the government which still retains a 29 percent stake, have a majority to ensure the carrier maintains its right to fly under bilateral accords. (Writing by Suleiman al-Khalidi; Editing by Michael Shields) ($1 = 0.709 dinar)