Net profit fell to US$21 million from US$42.5 million a year earlier
El Al Israel Airlines posted a 51% drop in third-quarter net profit. In a statement issued by the company it noted that profit was hit by a jump in fuel costs and increased competition.
Jet fuel prices rose by 47%, raising the airline’s jet fuel expenditure from US$160 million to US$205 million in the third quarter. Net profit fell to US$21 million from US$42.5 million a year earlier.
Revenue increased 6% to US$602 million, with cargo revenue up 16%. El Al's load factor - a measure of seats sold - slipped to 82.4% from 83.8%.
The company announced plans to lay off 200 employees while top executives agreed to pay cuts. Chief executive Elyezer Shkedy said he and El Al chairman Amikam Cohen agreed to a 20% cut in their monthly salaries starting in December 2011 and for all of 2012.
Other board members also agreed to a 20% reduction in their compensation while company vice-presidents will take a 10% pay cut. Chief executive Elyezer Shkedy noted that the airline is "committed to and prepared for a continuing effort to cope with the economic changes in Israel and around the world, with challenging market conditions and competition".
