El Al Q1 losses widen
El Al Israel Airlines posted a Q1 2016 net loss of $21.4m, widened from the company’s $16mi net loss in Q1 2015. Operating revenues were $396.5m, down 5.6% compared to the year-ago revenues of $419.8m. The airline said that the latest quarter’s figures were affected by the timing of Passover, which this year fell in Q2, whereas in 2015 it fell at the start of April, which meant that holiday departures had already started by the end of March 2015. Apart from this factor, however, El Al said the figures had been affected by a continuing decline in ticket prices due to increased competition. Deteriorating currency exchange rates were also a factor. CEO David Maimon also made reference to an increase in costs “due to disruptions in flights’ staffing,” apparently a reference to a dispute earlier this year with the airline’s pilots over salaries and terms of employment. Maimon said negotiations with pilots’ representatives were continuing “in order to enable the company to direct its efforts to cope with the increasing competition in the aviation industry.” <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-06-03/unaligned/el-al-q1-losses-widen
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El Al Q1 losses widen
El Al Israel Airlines posted a Q1 2016 net loss of $21.4m, widened from the company’s $16mi net loss in Q1 2015. Operating revenues were $396.5m, down 5.6% compared to the year-ago revenues of $419.8m. The airline said that the latest quarter’s figures were affected by the timing of Passover, which this year fell in Q2, whereas in 2015 it fell at the start of April, which meant that holiday departures had already started by the end of March 2015. Apart from this factor, however, El Al said the figures had been affected by a continuing decline in ticket prices due to increased competition. Deteriorating currency exchange rates were also a factor. CEO David Maimon also made reference to an increase in costs “due to disruptions in flights’ staffing,” apparently a reference to a dispute earlier this year with the airline’s pilots over salaries and terms of employment. Maimon said negotiations with pilots’ representatives were continuing “in order to enable the company to direct its efforts to cope with the increasing competition in the aviation industry.” <br/>
