Fuel and salary costs erode El Al's Q3 profits

El Al
El Al

In the first nine months of 2018, El Al reported an accumulated loss of $21 million compared with a net profit of $35 million in the corresponding period of 2017.

El Al Israel Airlines Ltd. (TASE: ELAL) reported its third quarter of 2018 financial results this morning with net profit falling 15% to $42 million on revenue of $642 million, 2% up from the corresponding quarter.

In the first nine months of 2018, El Al reported an accumulated loss of $21 million compared with a net profit of $35 million in the corresponding period of 2017. Revenue between January and September 2018 was $1.65 billion, up 4% from the corresponding period of 2017.

El Al explained that falling profits were mainly due to higher jet fuel costs because of the higher price of oil on world markets while its latest salary agreement with employees also increased expenses. Airport fee and services prices also added to expenses.

El Al's share price is down 25% since the start of the year, giving a market cap of NIS 560 million. But following the third quarter financial results this morning, El Al's share price was up 11.57% on the Tel Aviv Stock Exchange (TASE).

Published by Globes, Israel business news - en.globes.co.il - on November 21, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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