Israel's El Al posts deepening losses as market share shrinks

El Al Israel Airlines reported higher Q4 losses Wednesday, citing increased salary and jet fuel expenses and as its market share continued to erode in the face of intensifying competition. Israel’s flag carrier has met with stiff competition from rivals including Turkish Airlines, Aeroflot, easyJet and WizzAir, which offer lower fares even though some flights require a layover. “During 2017 the company faced increasing competition in the Israeli aviation market as a result of a significant increase in the number of seats of foreign airlines, especially low-cost carriers,” said CE Gonen Usishkin. The company said it lost $29.7m in the final three months of the year, compared with a $2.4m loss a year earlier. Revenue grew by 11% to $512m, but this was more than offset by a 17% rise in expenses, mainly from salaries and jet fuel. El Al remained the market leader at Ben Gurion International Airport near Tel Aviv, but its market share fell to 28.5% last year from 32.6% in 2016. Passenger numbers rose 2.4% last year while the total number of travellers at Ben Gurion was up 16%. El Al is banking on a more than $1 billon overhaul of its long-range fleet to win back customers while also revamping its short-haul fare structure.<br/>