A sharp rise in the price of jet fuel pushed El Al Israel Airlines Ltd. (TASE: ELAL) into losses in the second quarter of 2011, despite higher revenue, the company reported this morning.
Revenue was $530.49 million in the second quarter, up 5.6% from the corresponding quarter of 2010. However, the company reported an operating loss of $19.7 million compared with a net profit of $14.84 million in the corresponding quarter last year. These results were nevertheless an improvement from the first quarter of 2011 when El Al reported revenue of $425.2 million and an operating loss of $53.5 million.
Operating costs were $470.15 million (88.6% of revenue), up 17% from $400.94 million in the corresponding quarter. Sales costs rose 6% from the corresponding quarter to $55.93 million.
El Al said that there was a sharp rise of 47% compared with the corresponding quarter in the average price of jet fuel, however with hedging the company actually owned paid 20.3% more.
El Al reported 12% higher passenger traffic on routes to Western Europe than in the corresponding quarter of 2010, a 9% rise in passenger traffic to Central and Eastern Europe, and a 37% rise to the CIS. Transatlantic passenger traffic rose 1% and passenger traffic to the Far East fell 4%.
Published by Globes, Israel business news - www.globes-online.com - on August 17, 2011
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