El Al nine-month results beat expectations
El Al made break-even for the first nine months of 2002, posting a $500,000 profit, compared with a $58.9 million loss in the corresponding period last year.
The airline made a $29 million profit in the third quarter, up 19.8%, compared with the third quarter of 2001 which was $24 million.
El Al's improved results are attributable mostly to its restructuring plan last year called "Tafnit" which was made by McKenzie.
A senior El Al sources said the improved results also changed the prognosis for the company's loss at the end of the year. Up until now, a $30 million loss was predicted, the source said, but it's now clear the loss will be much smaller, and will in effect be determined by the fourth quarter results.
El Al's revenue in January-September 2002 was $833 million compared with $856 last year. The reason as explained was: "A decrease of 34% in the amount of tourists the airline had flew during that period of the year".
The company has a $61.1 million positive cash flow from current activities in the third quarter, a 14.4% increase.
I find these results pretty amazing when you realize in what environment this airline is working;
-It's the only airline in the world which operates only 5.5 days a week.
-The impossible situation in Israel. Less than 1 million tourists are expected in Israel this year (2002) compared with 3.7 million in 2000.
-The fact that LY is a "Dot to Dot" airline with no domestic network because of political reasons, enabling LY to offer any other destinations than TLV to foreign pax.
-I can continue with reminding that LY can not fly over most Arab territory on every flight to the East (forcing the LY's airliners to fly another 2.5 extra hours on every flight to Asia). Etc'
And I didn't even mention September 11.
P.S. Congratulation El Al. 800 photos in the database and growing!