El Al Israel Airlines (TASE: ELAL), controlled by Knafaim-Arkia Holdings (TASE: KNFM), today reported its results for the third quarter of 2005. The report can be summarized as an improvement, despite higher fuel prices. It is important to mention that, over the past year, ticket prices charged by El Al and other international airlines have risen along with fuel prices.
El Al posted a $52.2 million net profit in the third quarter, compared with $47.4 million in the third quarter of last year, and its revenue rose 17% to $485.2 million. Holiday season tourism made the third quarter a good one.
El Al reported that jet fuel prices leaped an average of 43%, compared with the corresponding quarter last year. Fuel costs totaled $52 million, including $50 million for jet fuel, but hedging transactions reduced these costs by $23 million.
El Al’s financing expenses fell from $7.1 million in the third quarter of 2004 to $6.2 million in the third quarter of this year. Quite a few other companies suffered an increase in this item, due to higher payments on loans linked to the dollar.
El Al’s cash flow plummeted from $105 million in the third quarter of last year to $56 million in the third quarter of this year. The airline attributes the fall to changes in credit terms from jet fuel suppliers.
Published by Globes [online] - www.globes.co.il - on November 24, 2005