El Al reports decreased net profit for third quarter of 2014

Revenues amounted to US$601.2m, compared to US$643.3m during the equivalent quarter in the previous year, a decline of 6.5%. Revenues per passenger declined by 7.3%, mainly as a result of a drop in the yield per passenger-kms, as a result of the negative effects of the ‘Operation Protective Edge’. Revenues from cargo transport increased by 4.5%, mainly as a result of an increase in the number of ton-kms flown, after setting off a decline in the yield. Operating expenses increased by 2% to US$493m compared to US$483.6m during the equivalent quarter in the previous year. The rate of operating expenses to turnover increased from 75.2% in the third quarter of 2013 to 82.0% in this quarter. The increase in operating expenses was a result mainly of the increase in expenses for jet fuel, an increase in levies and air transition fees, and after setting-off the decline in salary and security expenses. Income from operations amounted to US$29.1m, compared to US$75.6m during the equivalent quarter in the previous year. Net financing expenses during the quarter amounted to US$15.4m compared to net financing income of US$5.2m the equivalent quarter in the previous year, mainly due to the results of hedging the rates of exchange. Net profit for the third quarter of 2014 amounted to US$10.1m, compared to US$57.9m for the third quarter of 2013. Cash flows used for operating activities in the third quarter of 2014 amounted to US$12.0m compared to US$56.1m cash flows provided by operating activities during the equivalent quarter in the previous year. The EBITDA in the third quarter of 2014 amounted to US$57.3m compared to US$100.6m during the equivalent quarter.