El Al narrows loss on lower revenue

El Al reduced its personnel to 5,938 persons at the end of June from 6,106 persons a year earlier.

Revenue fell 3% to $516.8 million for the second quarter from $530.5 million for the corresponding quarter, but net loss narrowed 68% to $6.2 million from $19.7 million.

El Al said that income from passengers fell 1%, because a drop in the number of passengers carried and because of the depreciation of the euro against the dollar. These factors were offset by an increase in income per passenger/kilometer. Cargo revenue fell 7.2% to $47.6 million for the second quarter from $51.3 million for the corresponding quarter, due to a reduction in the quantity of ton/kilometer. The airline's share of the cargo market rose to 32.4% in the second quarter from 31.5% in the corresponding quarter.

Operating costs fell 7% to $438.9 million for the second quarter from $470.2 million for the corresponding quarter, but the cost for jet fuel rose by $2.9 million. 1.6% compared with the corresponding quarter. Most of the reduction in operating costs was achieved by reducing salary costs, changes in the dollar-euro exchange rate, and the government's larger participation in the airline's security costs.

El Al reduced its personnel to 5,938 persons at the end of June from 6,106 persons a year earlier.

Cash flow from operations fell to $14.1 million for the second quarter from $20.2 million for the corresponding quarter, and the airline's cash and cash equivalents fell to $109.5 million at the end of June from $173.8 million a year earlier.

Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2012

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