El Al Airlines Q1 loss widens on higher fuel costs

TEL AVIV (Reuters) - El Al Israel Airlines (ELAL.TA) said on Wednesday its first-quarter net loss widened due to higher jet fuel expenses and increased competition from foreign carriers.

Israel's flag carrier posted a net loss of $42.9 million, compared with a loss of $16.5 million a year ago.

Revenue edged up 0.5 percent to $425.2 million. Revenue from its cargo business jumped by 32 percent.

The company said higher oil prices increased jet fuel expenses to $147 million from $129 million.

"Profitability was also hurt by the erosion in the dollar's exchange rate, the timing of the Passover holiday which occurred in the second quarter and not the first, and a substantial increase in competition," Chief Executive Elyezer Shkedy said.

"We are implementing a plan to lower costs, including reducing the fleet of fuel-inefficient planes and strengthening our technological innovation."

Its load factor -- a measure of seats sold -- fell to 76.7 percent from 81.2 percent a year earlier and its market share at Ben-Gurion International Airport slipped to 38.2 percent.

(Reporting by Tova Cohen; Editing by Erica Billingham)