El Al loss soars

The average price for jet fuel in 2008 was 43% higher than in 2007.

Revenue at El Al Israel Airlines Ltd. (TASE: ELAL) rose 8.7% in 2008 to reach $2.1 billion. The company reported fourth quarter and full year of 2008 results today.

The average price for jet fuel in 2008 was 43% higher than in 2007. As a result, the airline posted a net loss for the year of $38.8 million , compared with a net profit of $44.8 million in 2007.

El Al said that the number of travelers through Ben Gurion Airport, both incoming and outgoing, continued to rise in 2008. However, the airline saw a drop in cargo carried, due to reduced exports flown abroad.

In 2008, the company saw an increase of 400,000 incoming travelers, reaching 2.19 million, and an increase of 119,000 in outgoing travelers, to reach 3.5 million over the course of the year.

The company increased cargo flown in to Israel by 1%, reaching 140,000 tons, and a 9% decrease in cargo flown out, to 182,000 tons.

The company noted that Israel's "open skies" policy to increase competition continued in 2008. Eight additional foreign carriers were added on routes to and from Israel, and other carriers added capacity. The increased competition lowered El Al's overall market share.

Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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