Net loss for El Al in 2014

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By admin April 2, 2015 20:46

Net loss for El Al in 2014

El Al, the Israeli national airline, has posted a net loss of $28 million in 2014, compared to a $26.7 million profit in 2013. Revenue fell 1% to $2.08 billion, while operating expenses rose by 2.2% to $1.79 billion. The airline’s average load factor was 82.5%, compared to 82.9% in 2013. El Al’s passenger revenues fell slightly by 0.9%, while cargo revenue declined by 1.7%.

“The results of 2014 reflect the effects of the ‘Protective Edge’ operation, which caused a significant decline in tourism and harm to El Al’s profits,” CEO David Maimon said.   The second half of 2014 had seen a 20% drop in inbound tourism to Israel as a result of the conflict between the Israeli armed forces and Palestinians.

“In addition the increasing competition at Ben Gurion Airport resulted in an erosion in flight prices, and as a result, together with the increase in operations and increase in market share, there was also an increase in expenses which harmed profit margins,” Maimon said.

admin
By admin April 2, 2015 20:46