Airline Reports $3.7 Million Net Profit
NEW YORK – August 20, 2013 – EL AL, Israel’s national airline, has announced financial results for the second quarter (April - June) of 2013. The net profit totaled $3.7 million, compared to a loss of $6.1 million in the parallel quarter of 2012.
Gross profits during this quarter grew to $82 million as compared to $78.1 million in the same quarter of 2012. Revenue totaled $529.7 million in the second quarter this year and was $516.8 million in the same time period last year. The resulting cash flow significantly rose to $47.8 million, compared to $14.1 million in the parallel quarter of 2012.
EL AL President and CEO Elyezer Shkedy reported, “This profit is a result of a seven percent increase in the number of available seats for sale this quarter, while maintaining a similar level of expenditures and a reduction in the number of employees. Our efforts to increase efficiency and to stabilize additional growth engines have also resulted in an increase of about 23 percent in internet sales over the parallel quarter last year.”
Another effort which has proven to be successful is that (worldwide) the EL AL Matmid Frequent Flyer Loyalty Club membership has grown substantially to 1.5 million members.
The company is also reporting positive cash flow while continuing with investment plans, including upgrading the fleet. EL AL has made payments for purchases of six new Boeing 737-900 aircraft with options for two more that will be used on short haul European routes.
During the second quarter, competition at Ben Gurion Airport continued to increase as the number of seats available on foreign airlines rose by nine percent.
The FIMI Investment Company gave EL AL an extension of 45 days, until August 29th, to finalize conditions for an agreement. President Shkedy is hoping that a new collective labor agreement will soon be formulated which, among other things, will enable FIMI to become an active investor in EL AL, allowing the airline to advance, grow and face the ever-increasing open skies competition successfully.
President Shkedy is grateful to all EL AL employees worldwide for their hard work and devotion to overcome all the difficult challenges facing the airline.
For more information and to book flights, visit www.elal.com or call EL AL at (800) 223-6700 or contact any travel agent. Learn more about special promotions as well as activities, special events and useful travel tips to Israel, plus more, by joining the airline on Facebook (ELALIsraelAirlinesUSA) and Twitter (@ELALUSA)