El Al reports $18.8 million loss for 2012

El Al CEO Elyezer Shkedy said losses due to difficult global market. The company was taking steps to increase efficiency, he said.

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March 22, 2013 00:02
El Al airplanes sit on the runway

El Al airplanes sit on the runway 370 (R). (photo credit: Ronen Zvulun / Reuters)

El Al on Thursday reported a loss of $18.8 million in 2012, a blow only made less harsh because it was an improvement over its 2011 losses of nearly $50m. The total loss in the fourth quarter was $26.5m.

The company’s overall revenues fell slightly in that time period from $2.04 billion to $2.02b., though its gross profit increased some 13 percent to $313.3m.

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El Al CEO Elyezer Shkedy said the losses were due to a difficult global market. The company was taking steps to increase efficiency, he said, adding that it had reduced its workforce by 135 people, reducing salary expenditures.

November’s Operation Pillar of Defense, an eight-day military conflict during which rockets were fired into Israel’s biggest cities from the Gaza Strip, also contributed to a fall in tourism that hit the company, Shkedy said.

“This year was primarily characterized by a significant reduction of expenses and dealing with increased competition and the damage of Pillar of Defense that significantly affected the results of the fourth quarter,” El Al CFO Nissim Malki said.


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