El Al: Q2 profit up as traffic and Cargo jumps
Aug 23, 2010
Source:Port2Port Israel's Trade Portal
El Al posted a net profit of USD$14.8 million, compared with a net loss of USD$19.7 million a year ago. Cargo revenue also grew 56% to USD$ 48.4 million
El Al Israel Airlines said last week it swung to a second-quarter net profit, as passenger and cargo revenue jumped. El Al posted a net profit of USD$14.8 million, compared with a net loss of USD$19.7 million a year ago.
Revenue rose by 25% to USD$498.5 million on higher passenger traffic and an increased yield per passenger per kilometer, El Al said. Cargo revenue also grew 56% to USD$ 48.4 million, compared to USD$31.0 million in the corresponding period last year.
El Al's market share from Tel Aviv's Ben Gurion international airport remained at 38%, while its load factor rose to 80.1% from 77.6% in the second quarter of 2009.
El Al said on Wednesday it overcame higher fuel expenses from a nearly USD$20 jump in oil prices and the volcanic ash crisis in Europe. The airline's cash balance was USD$180 million.
El Al's CEO, Elyezer Shkedy, credits this financial improvement to greater passenger traffic, a significant increase of revenue by 25%, a reduction of expenses, wise strategic commercial planning, aggressively facing the competition, and maintaining a high market share.
Shkedy stated, “We boosted its activities and seat availability, leading to an increased number of passengers. We also signed for and received a dedicated 747-400 cargo freighter which began operating during this quarter and helped significantly improve and expand worldwide cargo activities, resulting in a 56% increase”.
Shkedy added that "The significant cash balance... provides a good foundation, which will assist us in taking advantage of opportunities and to develop growth engines and additional revenue sources, all in accordance with the company's commercial strategies”.
For contact by E-mail: email@example.com