Tel Aviv – El Al Israel Airlines said its first-quarter net loss widened, hurt by a military conflict in the fourth quarter as well as increased competition and higher operating costs.
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Israel’s flag carrier said on Monday it had a quarterly net loss of $32.5 million, compared with a loss of $23.3 million a year ago.
Revenue rose to $431 million from $429.1 million. Revenue from passengers increased 2 percent while revenue from its cargo business fell 11.5 percent.
Operating costs rose 1 percent to $393.1 million as its jet fuel expenses grew by 4.8 percent.
El Al is implementing a plan to lower costs and reduce the size of its staff, Chief Executive Elyezer Shkedy said.
In response to trends in global markets, El Al’s board has approved the start of short haul flights using four Boeing 737-800 jets beginning no later than the summer of 2014. The destinations have yet to be determined.
Its load factor – a measure of seats sold – rose to 81.7 percent from 81.2 percent, while its market share at Ben-Gurion International Airport slipped to 34.7 percent.
El Al is controlled by Knafaim Holdings with a 39 percent stake.
Last month the FIMI fund agreed to invest up to $75 million in El Al in return for up to 47 percent of the carrier. The deal is subject to the signing of a new labour agreement that is acceptable to FIMI, Israel’s largest private investment fund.
As long as they are required to operate in accordance with government rules regarding shabbos operations, bloated staffing and inflexible rules imposed by union agreements etc. they will never be competitive. While El Al is known for its gourment cuisine, top-of-the-line hasgacha, and outstanding customer service with special attention to the needs of heimeshe travelers, all of those good things cannot change the fundamental economic outcomes resulting from government and union interference with management perogatives.
El Al tickets just cost TOO MUCH
anywhere from $1600-2500 yom tov time
$1200 -1600 off season.
even when they run specials and you get thru the fine print and exclusions there is not much savings.
Israel is one of the most expensive nations to visit.and,if you have to stay in hotels and rent cars,etc. it just costs itself out of the market/.
If they would charge $799-all fees included-they would fill up every plane,fly more frequently,and the bottom line would increase.especially if they had some REAL hotel packages.
Reopen the country to the middle-class visitor.
Firstly, to all who are not familiar with corporate PR defense strategy, comment 1 was written by an El Al rep in all likelihood. The unions and the extreme lack of customer care to all but the most elite Platinum members is a major issue. El Al has used the security benefits as a major selling point.They need more than that to merit the high fees. Price gouging around Yom Tovim is horrible. Their website utilization is the absolute worst in the industry. Seat choosing is the most archaic and very difficult.They block seats to all but the highest elite members under the guise, “all seats are being allocated at the airport”. Why should all seats not be assigned at the time of booking or changed by web selection seating? Because if they do so, the “protekzia” is lost for the elites or those who know people on the El Al side. I know somebody who sends gifts of $500-$1000 twice a year to an El Al agent who he has befriended and gets King Solomon club and frequent upgrades of all types except first class. When I was Platinum years ago, I often sat in business next to family or friend of El Al staff including flight attendants spouses etc….Competition is good,live with it or go bust!
# 7 -ain somchim al haneis !
You should see ,now that there is no visa requirement from Russia(rahsha)
these goyim are coming here by the thousands and spending millions of shekel.
They get airfare, tours, and hotel specials for ten days for less than $1000.
They spiritually pollute the country but that’s who you see on the streets ,restaurants,etc.of our holy country and nation.
Too Many American jews can’t afford to come .Everyone , however still thinks of the rich American-well those days are long over.
And it’s quite disgusting to hear mostly Russian from the descendents of those who for centuries persecuted us and pogrommed us.
Perhaps there should be special programs for elderly middle-class jews who have never been to Israel rather than just for young people.
somethings must change soon or we will be taken over by these goyim !
Just recently their call center hung up when I asked for special help to book a relative on the next flight to be there for a levaya. They are rude and bad people.