El Al Israel Airlines Ltd. (TASE: ELAL) is benefitting from the increase in incoming tourism and passenger traffic at Ben Gurion Airport, the national carrier's hub.
El Al's net profit more than tripled to $42.5 million for the third quarter of 2010 from $12.3 million for the corresponding quarter of 2009. The airline posted a net profit of $40.8 million in January-September, compared with a net loss of $47.3 million in the corresponding period of last year.
El Al's revenue rose 13% to $561.2 million for the third quarter from $496 million for the corresponding quarter.
El Al had a positive cash flow from operations of $46.6 million for the third quarter, compared with a negative cash flow from operations of $18.8 million for the corresponding quarter. Cash and cash equivalents totaled $197.7 million at the end of September, $83.1 million more than at the end of 2009.
Passenger traffic at Ben Gurion Airport rose 5.7% to 3.8 million persons in the third quarter from 3.6 million in the corresponding quarter. Cargo traffic rose 10.4%.
El Al's share of international scheduled flights and charter flights from Israel fell to 34% in the third quarter from 34.7% in the corresponding quarter. Average plane occupancy rate fell to 83.8% in the third quarter from 85.1% in the corresponding quarter.
El Al CEO Eliezer Shkedi said, "In addition to the operating and business results in the passenger segment, cargo operations showed strong improvement, with revenue up 34% during the quarter. At the same time, we continue developing growth engines in code-sharing, maintenance, commerce, and tourism."
El Al's share price rose 1.1% in early trading to NIS 1.40, giving a market cap of NIS 687 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2010
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