Royal Jordanian (RJ, Amman Queen Alia) management is planning to present a plan to cut the carrier's overall capital by JOD37.9 million (USD53.50 million) at an AGM to be held on May 2. The Jordan News Agency reports the AGM will also seek shareholder approval for the airline's 2015 budget and business plan.

The carrier said in a filing with the Amman Stock Exchange that reducing its total capital from JOD84.3 million (USD119.0 million) to JD46.4 million (USD65.5 million) would help write off a portion of the financial losses it incurred in 2014.

Once all losses and outstanding debts have been dealt with, the plan calls for the government and other major shareholders who own over a 10% stake in the carrier, to help re-increase the airline's capital reserves by JOD200 million (USD282.4 million) to JOD 246.4 million (USD347.8 million).

Amman is the airline's largest shareholder with a 26% stake followed by Mint Trading Middle East Limited (19%), the Social Security Corporation (10%) and the Jordan Armed Forces-Arab Army (3%). The remaining shares are owned by other Jordanian and non-Jordanian companies and individuals.

While Royal Jordanian's growth strategy had focused on developing new routes to destinations such as Iraq, Libya and Syria, the Arab Spring uprisings, coupled with the ongoing conflict in Syria and the rise of ISIS in neighbouring Iraq have badly impacted the airline's bottom line. For its most recent 2013/14 Financial Year, it posted a JOD39.6 million (USD55.9 million) net loss.