El Al: Q2 loss on high fuel costs

El Al recorded a quarterly net loss of USD$11.2 million, compared with a net profit of USD$16.6 million a year earlier. Operating revenue climbed 23% to $557 million
 
El Al Israel Airlines Ltd, the Israeli national carrier, reports last week its second quarter of 2008 results. El Al Israel Airlines said it had made a net loss in the second quarter, as it grappled with high fuel costs, a weak dollar and increased competition.
 
El Al recorded a quarterly net loss of USD$11.2 million, compared with a net profit of USD$16.6 million a year earlier.
 
Operating revenue climbed 23% to $557 million, its highest-ever second-quarter total. It credited a 26% lift in passenger revenue "as well as other revenue increases such as duty-free sales and  providing maintenance services to other companies." Operating loss was $17.7 million, reversed from a $27.1 million operating profit in the year-ago period.
 
Haim Romano, El Al CEO, said: "The Company recorded record revenues during the second quarter, reflecting a growth of 23% compared to the parallel quarter last year. The revenue growth is a result of the continuation of implementing the ‘El Al 2010’ strategy; and the continuing growth and investment that signify El Al's ability to face up to the challenging changes in international and local aviation".
 
El Al said it increased the number of seats and flight hours in the quarter, but passenger load factor fell to 81.1% from 86.5% a year ago.
 
It said its market share was about 34%, down from 42.5Z% in the first quarter. Fuel costs in the April-June period rose to USD$214.4 million from USD$119.1 million a year ago, with fuel representing 40% of flight expenses. Overall, operatingexpenses grew 37%.