El Al – third quarter net profit USD$47.4 million

National carrier El Al Israel Airlines posted on Thursday a fifth consecutive quarterly profit . The sharp rise in fuel prices, however, greatly eroded the company’s profit margin in the third quarter.
 
El Al, in which the government owns 75 percent, posted a net profit of USD$47.4 million in the third quarter compared with a net profit of USD$61 million a year earlier.
 
The steep rise in fuel prices, however, limited the company’s gross profit to $119.3 million, and its profit margin fell from 35% in the third quarter of 2003 to 29% in the third quarter this year.
 
The higher fuel prices cost the airline USD$22.3 million, El Al said in a statement Revenues rose 10 percent to USD$414 million in the quarter due to a 40 percent increase in the number of passengers and an 8 percent rise in the amount of cargo flown.
 
Mr. Yair Shamir El-Al's chairman and Mr. Amos Shapira, director general said in a press conference that management and general expenses totaled $67.7 million, 17% of sales, the same as in the corresponding quarter last year.
 
Operating profit,however, fell 19% to $51 million, and operating profit margin was down from 17% in the third quarter last to year to 12% in the third quarter this year. Third quarter net profit shrank 22% to $47.4 million, giving El Al a $58.9 million net profit in January-September 2004.