El Al: 7 million dollars net profit in the 2nd quarter

El Al continues to show profits. For the first time in its history, the airline has had four successive quarters showing profits; The cash flow from current activity in the reported quarter is higher than ever when compared to parallel quarters.
 
El Al Chairman of the Board Yair Shamir and El Al President Amos Shapira today presented the financial results for the second quarter of 2004. For the first time in its history, El Al is reporting four successive profitable quarters.
 
A net profit of seven million dollars as compared with a loss of 28.8 million dollars in the parallel quarter last year. The airline's revenues in this quarter were 324 million dollars as compared to 261.9 million dollars, an increase of 23.7%, although market growth was only 19%.
 
Cash flow from current activity in this quarter was 51.7 million dollars as compared with 17.2 million dollars in the parallel period last year.
 
A net profit of $11.5 million in the first half of the year as compared with a loss of $64.3 million in the parallel period last year
 
The airline's market share increased by 2% in the present quarter, as compared with the parallel period last year. The market share has been rising consistently during the past four years, from 37.5% in 2000 to 41.9% in this past quarter, an increase of 12%. The market share of El Al's subsidiary charter airline, Sun D'Or, also rose, from 13% to 14% and the number of passengers increased by 31% over the parallel period last year.
 
Revenues from passenger travel in the second quarter increased by 27.4% and revenue from cargo transport increased by 14.6%, record revenues for a second quarter.
 
Upon presentation of these commercial results, Yair Shamir, El Al Chairman of the Board, says that these results attest to El Al's management approach in a difficult and competitive market. The unflagging efforts by management and employees to increase revenues and simultaneously to shrink expenditures continue to bear fruit and prove that despite the industry's seasonality and fluctuations, sheer determination makes it possible to strive for and attain ambitious goals.
"Considering the complex situation prevailing in the airline industry in recent years, El Al's achievements in recording profits in four successive quarters are even more impressive," says the Chairman.
 
He adds that El Al's achievement places the airline in a select group of airlines that have succeeded in making profits even in such a difficult commercial environment.
 
El Al President Amos Shapira noted that the results attest to a continuing trend of profitability – both in this quarter and in this half: The continuing rise in the airline's market share, says Shapira, points to trust and loyalty among the airline's customers and to successful implementation of the company's strategy of allocating resources and efforts towards strengthening airline ties with passengers and increasing their satisfaction in all aspects related to the product and to service. "In this regard, we can cite: increasing frequencies to various destinations, such as Los Angeles, Madrid, Paris, Budapest, Vienna, Ukraine and Brussels".
 
The airline's market share rose by about 2% in this quarter as compared to the parallel quarter last year. “Our market share has been increasing consistently in the last four years, from 37.5% in the second quarter of 2000 to 41.9% in the recent quarter, an increase of 12%. Our subsidiary airline Sun D'Or's market share also increased from 13 to 14% and the number of passengers carried rose by 31% when compared to the parallel period last year”, said Shapira.
 
Revenues from passenger traffic in the second quarter grew by 27.4% and revenue from cargo traffic rose by 14.6%, all-time record revenues for a second quarter. Shapira said that the increase in cargo activity is a product of efforts by the cargo division to improve its competitive capabilities, as can be seen in the marketing initiative of a new, sophisticated reservations system and the opening of a new cargo route between Luxembourg and Shanghai, enabling the airline to increase its cargo activities beyond the Israel market.
 
In the half year calculations, the airline succeeding in saving on expenses and economizing by about $18 million.
 
El Al President Amos Shapira thanked the management and employees for their great efforts to achieve these results. He added that this achievement belonged to all of the airline's employees, who gave wholeheartedly of themselves to bring about these results.