El Al announces its 2Q financial results, will fly to Dublin and Dusseldorf

El Al Israel Airlines announced its 2Q results today:

  • he Company’s (TASE: ELAL) revenues for the quarter amounted to approximately USD $584 million compared to approximately USD $547 million for the second quarter of 2018, indicating an increase of about 7%, mainly due to the growth in the number of passengers and the increase in revenue per passenger, which was attributable, among others, to the timing of Passover that occurred in the second quarter of the year.
  • The Company recorded a net profit of USD $83 thousand for the second quarter of 2019, compared to the loss of USD $18 million recorded for the second quarter of 2018; the improvement in results was attributable to the increase in revenues and a decrease in operating expenses, mainly fuel expenses, due to the drop in the fuel price and quantity consumed, which was affected by the operation of the cost-saving ‘Dreamliner’ aircraft.
  • These results though the implementation of IFRS 16 – Leases, which caused an increase of approximately USD $11 million in the Company’s financing expenses for the quarter and, in total, caused a decrease of approximately USD $5 million in profit before tax.
  • The Company recorded cash flows from operating activities totaling approximately USD $110 million for the quarter, compared to approximately USD $56 million for the second quarter of 2018. The Company’s cash and deposit balances as of June 30, 2019 amounted to approximately USD $317 million.
  • So far, the Company has successfully received 11 of the 16 787-9  ‘Dreamliner’ aircraft of the Acquisition Program. By the end of this year, the Company is expected to receive three more ‘Dreamliner’ aircraft, and in the first quarter of 2020 it will received the last two.
  • During the second quarter of 2019, the Company launched new routes to San Francisco, Las Vegas and Manchester, additional to the new routes to Tokyo and Chicago, which are expected to operate from March 2020.
  • The Company announces today the launch of new routes to Dublin and Dusseldorf, which will operate from summer 2020.

EL AL’s CEO, Gonen Usishkin, announced today as follows:

“During the second quarter of 2019, the company recorded a 7% increase in revenues, amounting to USD 584 million, mainly due to impact of Passover, which fell this year in the second quarter. In addition, the Company recorded an improvement in the key operational indicators, and all this alongside the struggle with the challenges and high competition at Ben Gurion Airport.

The Acquisition Program progresses as planned. Thus far, the Company has received 11 new 787-9 and we expect to receive three more by the end of the year, and the last two in the first quarter of 2020, this will complete the Acquisition Program.

We witness a constant growth in our customers’ satisfaction from these airplanes. We have removed, as planned, the 676 aircraft fleet and are currently gradually removing the 747 airplanes. At the same time, we have started implementing a program to improve aircraft interiors of existing fleets, which also progresses as scheduled. Accordingly, out aircraft fleet becomes younger and our product is better.

As part of our growth strategy, we enhance existing activities and expand our network of routes by launching routes to new destinations and adding flights to existing ones. In the last quarter, we launched the routes to San Francisco, Las Vegas and Manchester, in addition to the route to Niece, which was launched in the first quarter of 2019. Further to the announcement of launching the routes to Tokyo and Chicago, which are expected to operate from March 2020, the Company announces today the launch of routes to Dublin and Dusseldorf, which are expected to operate from summer 2020.

During the second quarter of 2019, we commenced, as planned, to operate flights to all the Company’s destinations in the East and South Africa under a new model, which provides the customer with the possibility of choosing between three different types of flight product packages – Light, Classic and Flex – each customer according to his needs.

I would like to thank our customers for the trust in El Al. We are doing everything possible so that customers will choose us over and over again. Special appreciation is extended to EL AL employees, who share this special effort.”

Dganit Palti, EL AL’s CFO, announced today as follows:

“The increase in the Company’s revenues and the decrease in its expenses improved the profit before tax for the reported quarter by approximately USD 23 million, compared to the second quarter of 2018. All these, despite the implementation of IFRS 16 (Leases), which reduced the improvement in the Company’s results for the quarter by about USD 5 million.  The Company recorded a decrease of approximately USD 8.5 million in fuel expenses for the reported quarter due to the drop in jet fuel prices and a decline in the quantity consumed, despite growth in operations as a result of operating the new 787-9 ‘Dreamliner’ aircraft, which are more efficient in fuel consumption.

In the second quarter of 2019, the Company received financing of approximately USD 145 millionfrom Japanese financial institutions, for the purpose of acquiring another 787-9 Dreamliner, which was received by the Company in June. So far, 11 new 787-9 Dreamliners have joined the Company’s fleet, of which 4 are owned and 7 are leased”.

El Al aircraft photo gallery: