El Al - Q1 loss narrows on cost cuts

El Al had a quarterly net loss of US$23.4 million, compared with a loss of US$42.9 million a year ago
 
El Al Israel Airlines Ltd. said its first-quarter net loss narrowed due to cost cuts, including a reduction in its workforce, and it is working on a new business strategy.
 
In a press release El Al said it had a quarterly net loss of US$23.4 million, compared with a loss of US$42.9 million a year ago. Revenue rose 0.9% to US$429 million. Revenue from passengers rose 7% while revenue from its cargo business fell 12%.
 
Operating costs fell 4% to US$389 million due to fewer hours flight time, salary reductions and increased government participation in security costs. Higher oil prices boosted jet fuel expenses by 9.1%. El Al's market share fell from 38.2% to 36.6% in the first quarter of 2012.
 
El Al also reported that the passenger-kilometer ratio (number of paying passengers times distance the plane flies) grew 0.7% and the rate of occupancy, which represents the efficiency index for aircraft fleet use, grew by 5.8% to 81.2%.
 
El Al CEO Elyezer Shkedy said, "The 2012 first quarter results were influenced by the global crisis, the rise in fuel prices, and competition in the aviation sector. The company is continually adapting itself to the situation, reducing activities and streamlining measures."
 
Shkedy added that the company had reduced its workforce by 231, increased sale of tickets via the Internet by 30% and direct sales by 10%.