El Al Israel Airlines appeared to be emerging from a prolonged period of financial crisis as it reported on Wednesday a huge rise in profits for the last year.
The company’s net profit in the third quarter of 2015 was $93 million, up 820% from $10.1 million in the corresponding quarter, Globes said.
The positive turn was attributed to a sharp drop in oil prices that has helped the airlines industry in general and a parallel rise in passenger traffic. The passenger numbers showed a recovery from the adverse effects of Operation Protective Edge.
El Al CEO David Maimon said, “Alongside the boost we received from lower fuel prices, the company also grew its commercial operations. Passenger traffic grew by 12.7% and plane occupancy was 86.3% in the third quarter compared with 82.1% in the corresponding quarter last year.”
He added, “We are in the midst of a momentum of renewal and implementing the company’s long-term strategy. Two weeks ago we signed a procurement agreement with Boeing worth $1.25 billion and we are continuing operations as part of the biggest long-term fleet renewal program in the history of El Al.”