El Al Israel Airlines profit soars 820%

El Al  picture: Eyal Yitzhar

With oil prices plunging and passenger traffic rising, the carrier reported strong financial results for the third quarter.

With oil prices plunging and passenger traffic rising, El Al Israel Airlines Ltd. (TASE: ELAL) has reported strong results in its financial report for the third quarter of 2015.

El Al's revenue for the third quarter of 2015 rose to $647.3 million up 7.3% from the corresponding quarter of 2014. The rise in revenue was mainly due to higher passenger numbers, because the corresponding quarter of 2014 saw Operation Protective Edge, and the accompanying missile strikes from Gaza into Israel, adversely effected tourist traffic.

Higher revenue was achieved despite lower fares due to the sharp fall in jet fuel costs.

El Al's net profit in the third quarter of 2015 was $93 million, up 820% from $10.1 million in the corresponding quarter.

El Al CEO David Maimon said, "Alongside the boost we received from lower fuel prices, the company also grew its commercial operations. Passenger traffic grew by 12.7% and plane occupancy was 86.3% in the third quarter compared with 82.1% in the corresponding quarter last year."

He added, "We are in the midst of a momentum of renewal and implementing the company's long-term strategy. Two weeks ago, we signed a procurement agreement with Boeing worth $1.25 billion and we are continuing operations as part of the biggest long-term fleet renewal program in the history of El Al."

Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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El Al  picture: Eyal Yitzhar
El Al picture: Eyal Yitzhar
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