El Al plane
Photo: Yaron Brener
CEO Eliezer Shkedy. Activities boosted
Photo: Yonatan Bloom
El Al announces profitable Q2
Israeli airline reports net profit of $14.8 million as financial results for second quarter of 2010, compared to net loss of $19.7 million during same period last year
El Al Israel Airlines is announcing a net profit of $14.8 million as the financial results for the second quarter of 2010, compared to a net loss of $19.7 million during this same period last year.
El Al President and 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.
The company’s overall revenue grew by 25%, totaling $498.5 million as compared to $399.4 million in the second quarter of 2009. There was also an 88.4% drop in operational costs. Cash flow from activities during this quarter totaled $82.9 million, an increase of 101% over the parallel quarter last year, leaving a cash balance of about $180 million.
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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.”
Offer Gat, vice president and CEO, El Al Airlines, North and Central America, said that “from the United States, there was a 15% increase in the number of passengers traveling to Israel as compared to the same time period last year. And, with the meeting that took place between the Presidents of El Al and JetBlue (in this quarter), even more El Al passengers will soon have added convenience when traveling to Israel from many other cities in the USA.”
In addition to accepting a 747-400 cargo aircraft to the fleet, which can carry up to 110 tons nonstop from New York (JFK) to Tel Aviv, El Al also launched its newest route between Tel Aviv and the popular beach resort of Eilat with 18 nonstop flights every week.
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