It's been a very long time since i wrote here for the last time.
Much has changed for me.. My whole life.
Well, got back from the navy for this weekend and here is a report I'd like you all to read and reply (...Of course..).
Made me really happy learning about it, though Ive been quite far from the business for the last 7 months.
Here it is;
El Al Q3 profits soar by 42 percent
Privatized airline El Al (TASE: ELAL) announced
third quarter net profits of $61 million
yesterday, up 42 percent on the parallel quarter
Improvement in its market share, growth in cargo flights and comprehensive
cost-cutting all contributed to making this third quarter, traditionally the strongest, the best quarter for the airline in the past decade, according to chairman Michael Levy.
Previous disappointing results had caused many potential investors to hesitate before buying the shares when the government floated the company earlier this summer. Many went for the share options.
Revenues rose 6.5 percent to $370 million, the carrier said, compared with $345.2 million in the same quarter of 2002. Sales from passenger flights grew 7.8 percent in the quarter despite the market itself increasing by only 2 percent in the period.
This could be attributed to El Al's success in raising its occupancy rate on
passenger flights from an average 76.1 percent in the third quarter of last year to 82.6 percent a year later.
In terms of net revenues per passenger-kilometer, a useful measure of
airline performance, El Al again managed an impressive 5.3 percent growth, to 6.17 cents.
The real surprise was its operating profit, which shot up 30 percent to $62.3 million, compared with $47.9 million in the parallel.
As for its shares, El Al was floated on June 10, 2003. Anybody who bought its bundled shares and options at the IPO has earned 370 percent in
five months, despite the frowns from analysts who predicted the investors had belly-flopped.
The carrier's strong report goes beyond its operating and net profits. Cash flow from current operations was $64.8 million in the
third quarter, compared with $60.7 million in
the parallel quarter.
El Al files its reports in U.S. dollars, which allows the company to benefit somewhat from the euro's strengthening against the dollar in the
CEO Amos Shapira commented that regulation in
the field of cargo flights had become more
flexible, and he compared it with the rigidity
still apparent regarding rules and regulations
at Ben-Gurion Airport. He pointed out that as a
result of the freer environment, El Al could
fly cargo flights between points in Asia, and
from Europe to Asia, via Tel Aviv.
Another positive item in the report is debt to
the banks. Long-term loans were down 6.1
percent at the quarter's end to $783.5 million,
compared with $834.4 million at the end of
2002. At the end of the quarter, El Al had
$80.3 million cash, up from $74.9 million at
the end of 2002.