Israel's CAL Cargo Airlines has reported a profit for the first time in six years. The carrier, established in 1976 and granted a licence in 1999 to operate independently, showed a net profit of $529,000 in 2005. This compares with losses of millions of dollars in 2004 and 2003.
CAL was first set up by fresh produce growers’ associations looking for a means to air freight their crops to western Europe. CAL chairman Eitan Ben David said at a 30th anniversary celebration this week that the airline's performance in 2005 is a result of re-organisation, such as the cancelation of non-profitable lines to Africa, Atlanta and Chicago; a reduction in the number of employees and cutting down operation costs through introduction of new fuel-saving technologies, among other measures.
A return to profitabilityhas allowed CAL to repay $20 million of its debts to banks, suppliers and third parties. Ben David estimated that 2006 “will be better than 2005,” in view of a change in the company’s policy by reducing significantly the seasonal air transport of fresh produce and making room during the winter season for exporting industrial equipment.
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