El Al Israel Airlines Ltd. reported a huge jump in profit for the second quarter. The carrier's net profit for the second quarter of 2014 was US$16.3 million, up 340% from US$3.7 million in the corresponding quarter last year.
Second quarter revenue was US$571 million, up 7.9% from US$529 million in the corresponding quarter.
El Al said it earned less per passenger/kilometers, apparently due to the launch of its new low-cost brand Up, but it flew 9.2% more passengers in the three months than it did the same time in 2013.
Looking ahead to the third quarter when results will be hit by Operation Protective Edge, El Al said that it had asked the government for compensation. The rise in revenue in the second quarter was due to an increase in passenger traffic despite a drop in average passenger-kilometer ratios.
Cargo business fell 3.6% in the second quarter although there was a rise of 12.3% revenue from other sources, mainly selling aircraft food to external sources. Operational profit in the second quarter was US$24.6 million, up from US$6.9 million in the corresponding quarter of 2013.
The projected damage to El Al Israel Airlines Ltd. due to Operation Protective Edge is much greater than the carrier projected a few weeks ago, and, according to the airline's revised estimates, the drop in revenue for the third quarter of 2014 will be between US$55 million and US$65 million.