El Al's first-quarter loss triples to US$49.9 million

El Al's first-quarter net loss widened due to a USD$20 million provision, a sharp increase in fuel prices and a move to new accounting standards
 
El Al Israel Airlines reported last Wednesday its first quarter financial results noting that record revenue was not enough to offset a difficult economic environment and a one-time provision related to potential liability for anticompetitive cargo activities.  Israel's national carrier recorded a quarterly net loss of USD$49.9 million, compared with a loss of USD$15.3 million in the same period last year.
 
El Al's first-quarter net loss widened due to a USD$20 million provision, a sharp increase in fuel prices and a move to new accounting standards.
 
Revenue jumped 21% to USD$471.5 million, boosted by increased seat availability, a higher number of passengers and increased cargo activities.
 
The company's aviation fuel expenses in the first quarter totaled USD$165.7 million, compared with USD$112.7 million a year earlier.
 
Capacity and passenger numbers were up during the quarter but load factor fell 1.7 points to 80.7%, El Al said. Romano said the carrier is counting on further passenger growth, while CFO Nissim Malki said its "strong cash situation indicates its stability and its ability to face the difficulties of this challenging period”.
 
El Al operates 36 jet aircraft to approximately 40 worldwide destinations.