Fourth quarter revenue totaled $417 million, 6% less than in the preceding quarter. Income generated from cargo operation was US$317.6, up 8% compared to 2005
El Al Israel Airlines Ltd. published last week its financial results for the fourth quarter of 2006. El Al posted a loss of $18.6 million for the fourth quarter, compared with a profit of $1.7 million in the preceding quarter.
Fourth quarter revenue totaled $417 million, 6% less than in the preceding quarter. Fourth quarter gross margin was 15%, while the airline's operating loss for the quarter totaled $17 million.
The company said it ended 2006 with a loss of $44.4 million owing to capacity increases driven by heightened competition (following the introduction of the "open skies" policy), and the war in Lebanon.
Sales rose 3% to $1.66 billion but the number of available seats climbed 21%.
The airline also noted that, in contrast to other airlines, the second Lebanon war caused substantial harm to its financial results for the third quarter, the most important of the year for incoming tourist.
Income generated from cargo operation in 2006 was US$317.6, up 8% compared to 2005. Mr. Haim Romano El Al's director general said that: "the increase in revenue from cargo operation shows that the company's strategic plan to develop additional profit centers has proved itself"