El Al Israel Airlines 1Q2011 loss widens

El Al Israel Airlines reported a widening of losses the three months ended 31-Mar-2011, due to rising competition and jet fuel prices.

The carrier's quarterly financial highlights were as follows:

  • Revenue: USD425.2 million, +0.5% year-on-year;
  • Operating costs: USD403.4 million, +11%;
  • Operating profit (loss): (USD53.5 million), compared with a loss of USD14.7 million in p-c-p;
  • Net profit (loss): (USD42.9 million), compared with a loss of USD16.5 million in p-c-p;
  • Market share: 38.2%, -2.0 ppts;
  • Passenger load factor: 76.7%, -4.5 ppts.

El Al CEO, Elyezer Shkedy, said: "Profitability was also hurt by the erosion in the dollar's exchange rate, the timing of the Passover holiday which occurred in the second quarter and not the first, and a substantial increase in competition. We are implementing a plan to lower costs, including reducing the fleet of fuel-inefficient planes and strengthening our technological innovation."

Its shares fell 4.2% yesterday.

Selected EAD daily share price movements (% change): 26-May-2011