NEW YORK – August 21, 2012
– EL AL, Israel’s national airline, announced the financial results for the second quarter (April - June) of 2012. Despite the challenges of the global economy, the complex geopolitical situation, the “open skies” policy and an increase in fuel prices, the airline is reporting a major decrease in losses, a significant increase in gross profits, a reduction in operating expenses and a positive cash flow. Great strides have been made to increase efficiency, introducing a new level of in-flight comfort on the U.S./Israel route and investing in the future that includes the purchase of new aircraft.
In this second quarter, the net loss was reduced to $6.2 million as compared to a loss of close to $20 million in the parallel quarter in 2011 and a $23.5 million loss in the first quarter of this year.
Gross profits during this quarter grew to more than $75 million as compared to $60 million in the same quarter in 2011. Operating expenses dropped by about 7 percent, totaling close to $440 million. Direct sales via the internet and the EL AL reservations center grew by almost 20 percent over the second quarter of last year. Revenue totaled $516.8 million, a drop of 3 percent this quarter as compared to the same period in 2011. The resulting cash flow is about $14.1 million, bringing the total for the first half of this year to more than $79 million.
Cargo revenue dropped as compared to the same time period last year by approximately 7 percent for a total of $47.6 million.EL AL President/CEO Elyezer Shkedy stated
, “EL AL successfully faced the challenges of a world economic crisis during this quarter. Our ongoing efforts to increase efficiency to adjust to the reality of the current business climate as well as carefully control expenditures have proven to be instrumental in reducing losses. We are continuing with our medium and long-term business strategy to reflect our targets and policies for the coming years.”
During this period, EL AL announced a new affordable class of service called Economy Class Plus that was launched this summer. Preferred seating, more leg room and seat recline, a wider seat cushion, a foot rest, a comfort kit and a curtain for privacy are all featured. Economy Class Plus is now offered for an additional $150 per person, each way between New York (JFK/Newark) and Israel on EL AL 747-400 aircraft. The service is expected to be offered on 767 and 777 in early 2013.”
EL AL Vice President/General Manager, North and Central America, Danny Saadon says, “We are committed to providing only the highest standards for our customers and Economy Class Plus is just the latest example that responds to the growing needs of our passengers. We are pleased to provide another level of comfort at great value which has resulted in such positive feedback.”
As part of an effort to re-equip and reduce the age of our fleet for the long term, EL AL has purchased two additional 737-900 aircraft from Boeing and is currently negotiating to purchase a wide body aircraft as well.
For more information and to book flights, visit www.elal.com
or call EL AL at (800) 223-6700 or any travel agent.
Learn more about EL AL Economy Class Plus, special promotions, special events in Israel and useful travel tips by joining the airline on Facebook (EL AL Israel Airlines USA)
and Twitter (@ELALUSA)
EL AL USA Facebook fans can have free membership to the EL AL Matmid Frequent Flyer Club
to earn bonus tickets and upgrades to premium classes, priority seat selection, and other exclusive member-only offers.