El Al reports 22% drop in third quarter profit

Airline Industry Information, Nov 25, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Israeli national airline El Al has reported a drop of 22% in third quarter profit despite a 10% rise in revenue over the period.

The airline reported revenue of USD413.7m in the third quarter of 2004, up 10% on 12 months earlier, but higher fuel costs have eaten into the airline's gross profit, cutting it to USD119.3m. El Al reported a drop in profit margin to 29% in the third quarter of 2004 compared to 35% in the same period in 2003.

General expenses and management cost 17% of the airline's sales while operating profit fell 19% to USD51m, with the operating profit margin down to 12% from 17% in 2003. Third quarter net profit was down 22% at USD47.4m, leaving the airline with a January to September 2004 net profit of USD58.9m, reports Globes Online.

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