El Al attributes 2014 net loss to effects of Operation Protective Edge

El Al CEO David Maimon attributed (31-Mar-2015) the carrier's USD28.1 million net loss for 2014 to the effect of Operation 'Protective Edge' on Israeli tourism. Mr Maimon said: "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. In the second half of 2014 there was a decline in incoming tourism to Israel by the considerable rate of 20%. 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." El Al CFO Dganit Palti added: "Together with this, the financial results were also affected by an accounting recording from hedging transactions that the Company made, due to the sharp decline in fuel prices and an increase in the rate of exchange of the dollar against the shekel in the second half of 2014. These changes were expressed in the negative accounting effect of 94 million dollars. Of this, 52 million dollars affected the results and the balance affected shareholders' equity. Nevertheless, the advantage of low fuel prices, for which the change in value of the transactions were recorded to the statement of income during the year of report, will be expressed in 2015 when the Company consumes the fuel." [more - original PR]