increase of 15.4% from freight, post and luggage in first quarter
Chairman Mr. Michael Levi and Managing Director Mr. Amos Shapira presented the company’s financial statements for the first quarter of 2004 showing a net profit of $4.5 m against a loss of $35.5m in same period last year.
El-Al’s income during the first three months of 2004 shows an increase of 33% to $302.6m against $227.5 in the same period of 2003.
The statement also indicated a positive cash-flow of $13.1m compared to a negative cash-flow of $35.8m in first quarter of 2003. The increase in profit was achieved despite the increase in fuel costs and the devaluation of the dollar against the euro which, according to the chairman have cost the company an additional $18m in extra costs.
The company has nevertheless been highly successful in effectively reducing labor and management costs, including insurance, communication and handling.
A spokesman for the company emphasized that the company enjoyed an income increase of 41.6% from the passenger sector as well as 15.4% in the freight sector including postal items and luggage.
Mr. Levi, the outgoing chairman, said in his last statement that he was proud to hand over a financially stronger company to his successor in a period that is known to be an extremely tough to the airline industry. The outgoing chairman added also that the financial statement was the first, since 1990, that showed net profit in a period which had hit hard the airline industry all over the world.
Mr. Shapira added that the company was beginning to realize the fruits of it’s active policy to increase the company’s competitiveness in which the company invested a great deal of efforts to create new markets, improve its flight schedule and increase its flights frequencies.
