El Al examines financial impact of Israeli Gaza conflict

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Israeli flag-carrier El Al estimates that lost income from the effects of the recent military action in Gaza amounts to $15-17 million.

It says it has taken "several measures to minimise the [financial] damage" resulting from the military action, Operation Pillar of Defence, which took place in mid-November.

But El Al says cancellations and a fall in bookings will have a negative impact of $7-9 million, which will "primarily" affect its fourth-quarter results for 2012.

El Al had posted an encouraging third-quarter balance sheet, which showed a near-80% rise in net profits to more than $37 million.

Revenues for the third quarter rose by 4% to $606 million while El Al managed to cur operating expenses by 6% to $458 million.

El Al had also turned in a higher passenger load factor of 84.5% for the quarter.

Its net profit for the nine months ending 30 September reached $7.7 million, an improvement on the $42 million net loss recorded at the same point in 2011.