Toronto, 25 November 2005 - EL AL Israel Airlines is reporting a net profit of $52.2 million (USD) for the third quarter of 2005 as compared to $47.4 million in the same period of 2004. The airline’s revenue (for passenger and cargo) in this quarter grew by 17% and reached 485.2 million.

This positive result was achieved in spite of a one time provision of $6 million for the additional early retirement program in 2006, as well as soaring fuel prices. The market price of fuel rose by about 43% in comparison with the third quarter of 2004. Due to hedging efforts by the company EL AL managed to save approximately $23 million however the costs still amounted to $27 million in operating expenses this quarter.

Factors such as an upward trend in passenger traffic, increased load factors, increases in market share, and reduction in operating expenses lead to this result of the highest net profit for a nine-month period in the last decade.

The team at EL AL has been working diligently in efforts to implement their strategic plan for the future entitled “EL AL 2010”, including the purchase of two new Boeing 777 aircraft (scheduled for 2007 delivery), efforts to lease additional wide-bodied aircraft, tourist-development initiatives, increasing cooperation, upgrading of their website, and most importantly improvements in their customers experiences from start to finish.

Stanley Morais, General Manager for EL AL in Canada states, “EL AL Canada experienced unprecedented growth and success this summer, with 9 weekly non-stops to Tel Aviv, as well as our much heralded Los Angeles service offering Canadians a superior product to these destinations.” Mr. Morais continued by reinforcing EL AL Canada’s successes by claiming “There was an increase in the number of travelers from Canada to Israel this summer with a load factor of over 93%, and a 27% increase in originating Toronto passengers. The ability to fly non-stop to their destination and EL AL’s piece-of-mind, and superior service makes us the logical choice for our passengers. Finally, the increases in the number of frequencies from North America contributed to this success.”

Currently celebrating 56 years of service EL AL, Israel’s national airline, has annual revenues of approximately $1.2 billion and carries more than 1.3 million passengers annually. EL AL flies to more than 40 destinations worldwide from Israel and to additional destinations with other airline partners. This winter EL AL will operate 5 weekly non-stop flights on a wide-bodied aircraft to both Tel Aviv and Los Angeles from Toronto.

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For more information, please contact Joel Solish, Sales and Marketing Manager at 416-967-4222 x 231 orjoel@elalcanada.com

To learn more about EL AL Airlines contact your travel agency or our reservations centre at 416-967-4222 or 1-800-361-6174.