El Al defies impact of Gaza conflict to post Q4 and full-year profits

Israeli flag-carrier El Al has fended off the impact of the Gaza conflict, posting a full-year pre-tax profit of $125m, and a net of $117m, after experiencing a strong Q4. El Al generated full-year revenues of $2.5b, a rise of 26%, while operating expenses only increased by 19% to $2.23b. While the Gaza conflict triggered a substantial reduction in passenger traffic, El Al says it benefited from decisions by foreign airlines to suspend services to Tel Aviv and its own ability to adjust its network. As a result, it states, the carrier experienced “increased demand” for flights which exceeded its early estimates and which – combined with other factors – had a “positive effect” on its Q4 results. El Al turned in a 21% rise in Q4 revenues to $678m and a net profit of nearly $40m. It says the positive trend has continued into Q1 this year. The airline points out that, after the outbreak of the conflict, it managed to add extra passenger and cargo services despite the drafting of “hundreds” of its personnel as reservists. El Al adjusted its route network, ceasing flights over Omani airspace and to certain destinations, including Istanbul, Marrakech and Sharm el-Shaikh, and bringing forward termination of seasonal services to Marseille, Nice and Tokyo.<br/>