El Al: Net income climbed in Q3 to $41.2m

Revenue rose 27% to a record $567m. 27% higher than in the corresponding quarter. However, operating costs were up due to higher fuel prices
 
El Al Israel Airlines Ltd., published last week its financial report for the third quarter of 2007, showing a healthy net profit of $41.2 million for the third quarter, compared with just $1.4 million in the corresponding quarter of 2006. 
 
Revenue rose 27% to a record $567m. 27% higher than in the corresponding quarter. Gross margin rose to 27% from 17% in the corresponding quarter.
 
The company noted, however, that operating costs were up due to higher fuel prices and the depreciation of the dollar against the shekel, the airline said.
 
El Al receives most of its revenue in US dollars, while wages and pension liabilities are tied to the Shekel. The US dollar declined about 10% in value against the Israeli currency from a year ago. 
 
El Al CEO Haim Romano said in a statement that "El Al's ability to show profitability is the outcome of determined action that brought about an increase in all its growth engines."
 
He noted that as part of cost-cutting efforts, the company reduced its workforce by 153 employees from a year ago. He added that the company eliminated flights to destinations that are not profitable, due to high security costs, including Turkey and Cyprus, and added flights on more lucrative routes.
 
Romano also noted that "The company has invested about NIS 1b. in development and renewal, more than in any other period since it was privatized,". Romano added that "We have completed the purchase of two new planes and added them to our fleet, we have invested $20m. in new seats, and we have reached the peak of a renewal momentum”.