Elal plane 311.
(photo credit: Courtesy)
El Al Israel Airlines Ltd. reported a 50 percent fall in profit for the third quarter of 2011. Net profit in the third quarter was halved to $21 million, down from $42.4 million in the corresponding quarter of 2010.
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Revenue in the third quarter of 2011 rose 6% to $602 million, up from $566 million in the corresponding quarter. El Al's operating expenditure, including jet fuel expenditure, rose 15% to $489 million in the third quarter of 2011 compared with $566 million in the corresponding quarter.
The carrier said that the main reason for the rise in expenditure was due to the rise in the cost of jet fuel, which amounted to $205 million in the third quarter of 2011 compared with $160 million in the corresponding quarter of last year.
El Al reported that the average cost of jet fuel was 47% higher in the
third quarter at $3.18 per gallon compared with $2.21 per gallon in the
In the first nine months of 2011, El Al lost $42 million compared with a
profit of $40.8 million in the corresponding period of 2010. Revenue
over the first nine months of 2011 amounted to $1.5 billion, up from
$1.4 billion in the same period of 2010.
El Al CEO Eliezer Shkedi said, "In this quarter, the company coped with
challenges and changes in the global and domestic aviation sector. Among
other things, the rise in the price of fuel and the global economic
crisis. These factors meant adapting operations and applying efficiency
measures to reduce El Al's expenditure, including optimizing the
aircraft fleet and re-examining airline routes and destinations."