EL AL's net profit rose to $41.2 million this quarter, compared to a net profit of $1.4 million in the third quarter of 2006. Cash flow from operating activities totaled $74.1 million
EL AL, the national airline of Israel, continues to fulfill its projections as revenues increased by a record 27% in the third quarter of 2007, totaling approximately $567 million. This compares to $447 million in the same quarter of 2007.
EL AL's net profit rose to $41.2 million this quarter, compared to a net profit of $1.4 million in the third quarter of 2006. Cash flow from operating activities totaled $74.1 million. Operating expenses for this quarter totaled approximately $415 million,which is mainly attributed to the rise in fuel costs ($6 million), and the devaluation of the dollar, which added $12 million to the company's expenses. This quarter, hedging activity by EL AL saved $5.1 million in fuel costs. Operational profits reached $63.8 million, compared to $8.5 million last year in the third quarter. As of September 30, 2007, the cash balance for the company was $265.4 million.
The dramatic increase in the third quarter net profit is partially due to the enormous growth in passenger traffic during this period. As a result, EL AL offered 4% more seats to Israel and the load factor rose to more than 87%. Other contributing factors to the quarter's outstanding profit are the meticulous care the airline has devoted to improving EL AL services and the overall product, an increase in revenue from cargo and leasing aircraft, as well as the providing of high quality EL AL maintenance services to other airlines.
"EL AL continues to realize its vision of leading the aviation market in Israel and being the first and preferred choice for all air traffic to and from Israel," stated Professor Israel "Izzy" Borovich, Chairman, EL AL Israel Airlines. "I believe that the economic strength of EL AL will continue, enabling us to further lead the company to fulfill its vision."
EL AL President Haim Romano said, "The ability of El Al to show profits is the result of the determined effort to reduce expenses while increasing revenue, particularly through the growth engines the airline defined for itself such as business passengers and increased tourism to Israel," President Haim Romano said. "All this, together with optimizing the fleet and reorganizing routes, brought about this increase and resulted in record growth in revenues and higher load factors."