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Israeli national carrier El Al reported a net loss of $38.8 million for 2008; compared to a profit of $44 million in 2007.  But the company reported record revenue for the year of $2.1 billion up by 8.7 percent on 2007.  The company put down much of their loss to the price of jet fuel which hit a record price of $147 a barrel in July.

El Al’s loss in the final quarter of 2008 was $9.4 million, compared to a loss of $5.3 million in the same period last year. This reflected the reduction in revenue from passenger and freight as a result of the global economic crisis.

Nissim Malki, Vice President Finance for El Al noted: "During 2008 oil prices continued to increase, reaching a record high of about $147 a barrel in July. From then, prices suddenly began to drop sharply, falling to $33 a barrel in December. The drop in jet fuel prices contributed to the drop in flight operating expenses, but because the Company maintains a long-term hedging policy, as is common practice in the aviation industry and is practiced by most other companies, the actual price that the Company had to pay for fuel (taking into account the costs of hedging) was higher than the market price.”

The average market price for jet fuel in 2008 rose by about 43% in comparison to 2007. As a result, El Al’s expenditure on fuel rose by about 45%, from $532.8 million to $771.2 million. That was after a return of $6.4 million on hedging transactions (compared to $8.3 million in 2007).

Annual revenue grew by 9 percent in 2008 totaling $2.1 billion compared to $1.9 billion in 2007.  This growth was mainly as a result of an increase of 12 percent in passenger revenue as well as an increase of close to 34 percent in other revenues such as duty free sales.

Haim Romano, CEO of El Al reported a positive cash flow, totaling about $118.9 million, this after repaying $160 million for investments in aircraft purchases and other fixed assets. The Company also repaid about $65 million in loans. 

El Al reported a load factor on its flights of 82.3 percent.  This comprised 2.19 million overseas tourists (+22% on 2007) and 3.5 million Israelis (+3% on 2007).

Romano added "As part of the development and underpinning of the Company's direct ticket marketing and distribution plan, we have recorded an impressive growth of over 130% in internet sales, which totaled $58 million in 2008. In addition, El Al recorded an increase of about 60% through the telephone Call Center, totaling about $59 million.”

He also said that company employees and management demonstrated their determination and ability to meet targets; advancing with the strategic plans, prepared and adapted to the new reality, in order to maintain El Al's leading position in the industry.