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.