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.
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