Category Archives: El Al Israel Airlines

El Al reports a net profit of $27 million for the third quarter

El Al Israel Airlines issued this financial report for the third quarter 2019:

  • For the third quarter of 2019, the Company reports a growth of 8% in seat availability, an increase of 6.5% in passenger traffic and an increase of 2% in market share.
  • At the end of the third quarter, 12 new 787-9 Dreamliner aircraft operated in the Company’s fleet. Four additional 787-8 aircraft will be added to the Company’s aircraft fleet by the end of the first quarter of 2020, thereby the Company expects to complete the Acquisition Program.
  • Despite the competition, the Company’s revenues increased to approximately USD 647 million.
  • Operating expenses for the quarter amounted to approximately USD 505 million, similarly to the third quarter of 2018, despite the 8% growth in Available Seat per Kilometer (ASK).
  • Fuel expenses decreased by approximately USD 13.5 million, both as a result of the decrease in jet fuel market prices and as a result of using the new efficient 787-9 aircraft.
  • Other income amounted to approximately USD 5.5 million for the quarter, due to the sale of one 767-300 aircraft which was removed from service, compared to an income of approximately USD 10 million for the third quarter of 2018, mainly from insurance receipts.
  • Profit before tax was adversely affected by approximately USD 4.5 million due to the implementation of the accounting standard IFRS 16 that increased the financing expenses by approximately USD 12.5 million and reduced the operating expenses by approximately USD 8 million.
  • Profit before tax for the quarter amounted to approximately USD 35 million, compared to a profit before tax of approximately USD 54 million for the third quarter of 2018. The profit was affected by an increase in financing expenses as well as an increase in payroll expenses, mainly due to a decrease in the discount interest rate on actuarial liabilities.
  • Net profit for the quarter amounted to approximately USD 27 million, compared to net profit of USD 42 million for the third quarter of 2018.
  • EBITDAR for the quarter amounted to approximately USD 140 million, similarly to the third quarter of 2018.
  • In the first nine months of 2019, the Company’s revenues amounted to approximately USD 1.66 billion, reflecting a slight growth compared to the Company’s revenues for the first nine months of 2018; loss for the period amounted to approximately USD 28 million, compared to a loss of approximately USD 21 million for the first nine months of 2018.

EL AL’s CEO, Gonen Usishkin:

“Notwithstanding the competition at Ben Gurion Airport, the Company succeeded to increase and improve its market share by 2%, with the number of passengers increasing by 6.5%.

“The Company’s Acquisition Program progresses as planned. Thus far, the Company has received 12 new 787-9 aircraft, and by the end of the first quarter of 2020, 4 additional 787-8 aircraft are expected to arrive, thereby the Program will be completed.

“Alongside this, at the beginning of the year, all the 767-300 aircraft were removed from service and thereafter all the 747-400 aircraft were also removed from service, as the last one terminated its operation at the beginning of this month with a special and exciting farewell flight, after nearly 50 years of service in the Company’s aircraft fleet.

“We completed the major part of the Aircraft Interior Improvement to 737-800NG narrow-body aircraft fleet.

“We entered into an agreement for the lease of 3 additional 737-800NG aircraft for a period of six years, of which the first aircraft is expected to be received in the next month, and the two others are expected to be received in April 2020.

“Out aircraft fleet has become younger and, for the first time, the aircraft average age falls below 10 years. Our product improves and we witness constant increase in our customers’ satisfaction.

“As part of our growth strategy, we enhance existing activities and continue to expand our network of routes by launching routes to new destinations. Thus far in 2019, the Company has launched the routes to Niece, San Francisco, Manchester, and Las Vegas, and in 2020 the Company is expected to launch the routes to Chicago, Tokyo, Dublin and Dusseldorf.

“In July 2019, we launched the new booking engine for the Matmid Frequent Flyer Club members and improved the value offer to the club members.

“In September 2019, the Company entered into a triangle agreement with CAL, Diners and a new strategic partner, MasterCard, in connection with the branded credit card, Fly Card. The new card to be issued is a combined Diners and MasterCard credit card that has a global coverage and offers expanded options to redeem points in the aviation and non-aviation world. The Fly Card credit card and the Matmid Frequent Flyer Club constitute one of the most important growth engines of the Company.

“I would like to thank our customers for their trust in EL AL. I am convinced that EL AL will continue to provide its customers with quality service, maximum comfort, technological innovation and advanced airplanes. We are doing the utmost to allow the customer to choose EL AL over and over again.

“I wish to express special appreciation to EL AL people in Israel and worldwide, who work with determination and dedication and make an extra effort for the Company’s success.”

Dganit Palti, EL AL’s CFO:

“The Company recorded a decrease in fuel expenses for the reported quarter, as a result of the decrease in jet fuel market prices and the amount of fuel consumed by the Company’s aircraft, notwithstanding the 8% growth in operations, mainly due to the operation of the 787-9 aircraft, which are more efficient in fuel consumption.

“The initial implementation of the accounting standard IFRS 16 adversely affected the Company’s results for the quarter by approximately USD 4.5 million, and for the first nine months of the year – by approximately USD 14.5 million.

“The company has signed an agreement with a JOLCO structure to finance the first 787-8 aircraft, expected to arrive this weekend. The USD 125 million financing includes a USD 106 million loan from a foreign bank for a 12-year period and an additional USD 19 million in Japanese Yen, to be provided by a Japanese company. The balance of the debt will be repaid after ten years at a pre-agreed amount of USD 45 million.”

El Al aircraft photo gallery:

El Al Israel Airlines goes full fleet with Viasat high-speed Internet

Viasat made this announcement:

El Al Israel Airlines, the national air carrier of Israel, and Viasat Inc., a global communications company, today announced they expanded their successful relationship, adding the Boeing 777 wide body fleet to the mix of EL AL aircraft with Viasat’s equipment for high-speed in-flight connectivity (IFC). In addition to the Boeing 777 fleet, Viasat equipment currently powers the connectivity experience across EL AL’s Boeing 787 Dreamliner, Boeing 737-900 and part of Boeing 737-800 aircraft. EL AL plans to have all widebody aircraft equipped with Viasat’s latest generation IFC solution and all narrow-body fleet equipped with Viasat’s in-flight entertainment and connectivity (IFEC) offering. El Al expects to have the majority of its fleet connected with the Viasat service by the end of 2020.

The Viasat in-flight Wi-Fi service offers an at-home or office experience in the sky, keeping flight crews connected for enhanced passenger service and enabling passengers using smartphones, tablets or laptop computers the ability to browse websites, connect to email and instant messaging, use apps and social networks and to stream music and/or films when in-flight.

Today, El Al offers three in-flight Wi-Fi packages—Basic, Social and Business—which can be purchased during the flight through the El Al Wi-Fi portal via credit card or EL AL Matmid Club points.

El Al aircraft photo gallery:

 

El Al to fly the last Boeing 747 revenue passenger flight tomorrow

El Al Israel Airlines Boeing 747-458 4X-ELB (msn 26056) LHR (SPA). Image: 948040.

El Al Israel Airlines has confirmed the last Boeing 747 revenue passenger flight for tomorrow (November 3) from Rome to Tel Aviv with this announcement:

A historic morning at Ben Gurion Airport! EL AL management raised a toast with members of the Matmid Frequent Flyer Club who joined us for the very last two commercial flights of the 747, also known as “The Queen of the Skies.”

El Al Israel Airlines Boeing 747-458 4X-ELA (msn 26055) LHR (SPA). Image: 948041.

Above Copyright Photo: El Al Israel Airlines Boeing 747-458 4X-ELA (msn 26055) LHR (SPA). Image: 948041.

EL AL invites you to follow the last commercial flight of the 747 jumbo aircraft which will depart from Rome this Sunday at 4 am EST and land in Tel Aviv.

In honor of this noteworthy event, the 747 aircraft will operate on a one-time historic flight path and create a “sky painting” of a Boeing 747 that will be broadcast live worldwide in cooperation with Flightradar24.

The aircraft will begin to create the “painting” about two hours after takeoff when flying above southern Cyprus. The Boeing 747-400 fleet has been replaced by the new EL AL 787 Dreamliner aircraft, which are being utilized on most U.S. Israel nonstop routes.

After 48 years, during which EL AL has flown many 747 models, the fleet’s activity has come to an end. EL AL is bidding farewell to the Boeing 747 Jumbo fleet, “Queen of the Sky” marking the end of a historic chapter in Israel aviation.

El Al Israel Airlines Boeing 747-238B 4X-AXQ (msn 20841) LHR (SPA). Image: 948042.

Above Copyright Photo: El Al Israel Airlines Boeing 747-238B 4X-AXQ (msn 20841) LHR (SPA). Image: 948042.

EL AL invites you to follow the last commercial flight of its 747 aircraft: Flight LY1747 from Rome to Tel Aviv.

The flight will depart on Sunday November 3, 2019 at 10am local time (11am Israel time). In honor of the event it will operate on a one-time historic flight path.

This flight path will create a “sky painting” of a Boeing 747 that will be broadcast live throughout the world in cooperation with Flightradar24.

  • The aircraft will begin to create the “painting” about two hours after takeoff when flying above southern Cyprus.
  • Timetable and flight path may change due to operational limitations and  weather conditions.

Update: Boeing 747-458 4X-ELC (msn 27915) operated flight LY1747 FCO-TLV on November 3, 2019.

Top Copyright Photo: El Al Israel Airlines Boeing 747-458 4X-ELB (msn 26056) LHR (SPA). Image: 948040.

El Al aircraft slide show:

El Al schedules its last Boeing 747 revenue flight

El Al Israel Airlines Boeing 747-458 4X-ELA (msn 26055) LHR (SPA). Image: 925399.

El Al Israel Airlines has been gradually replacing its Boeing 747-400 fleet with new Boeing 787-9 Dreamliners.

According to Airline Route, the carrier is now scheduling its last Boeing 747 revenue flight, charter flight LY 1747 between Rome (Fiumicino) and Tel Aviv on November 3, 2019.

The operational Boeing 747-458 fleet is now down to two aircraft: 4X-ELA (pictured) and 4X-ELC.

Top Copyright Photo (all others by the airline): El Al Israel Airlines Boeing 747-458 4X-ELA (msn 26055) LHR (SPA). Image: 925399.

El Al aircraft slide show:

 

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:

Air Italy signs new partnerships with Finnair and El Al

Air Italy has made this announcement:

Air Italy is delighted to announce the signing of two Special Prorate Agreements (SPA) with key carriers Finnair and El Al.

Now, thanks to the agreement with Finnair, five new key destinations in Finland (Helsinki, Turku, Oulu, Kokkola and Rovaniemi) are all now available via Milan Malpensa for Air Italy passengers departing from our seven key airports in central & southern Italy (Rome, Naples, Palermo, Catania, Lamezia Terme, Cagliari and Olbia).

At the same time, Finnair’s customers have now the opportunity to fly to Air Italy’s African destinations, traveling from Finland via Milan Malpensa, and connect seamlessly to Dakar, Lagos, Accra, Sharm El-Sheikh and Cairo.

Simultaneously, with respect to El Al, Air Italy’s passengers arriving in Milan Malpensa from North America will now be able to connect with El Al to land in Tel Aviv while El Al’s customers departing from Tel Aviv can now easily reach Air Italy’s North American destinations via Milan Malpensa.

Moreover, from Tel Aviv, El Al’s passengers can also connect to Air Italy’s domestic network from Malpensa to the key cities and towns of central and southern Italy such as Rome, Naples, Palermo, Catania, Lamezia Terme, Cagliari and Olbia.

 

El Al ends in-house Boeing 747-400F freighter operations, expands operations with ASL Airlines and AirBridgeCargo

Type Retired: June 30, 2019 (flight LY872 Liege - Tel Aviv with 4X-ELF)

El Al Israel Airlines has ended its in-house Boeing 747-400F freighter operations. Instead the company is farming out the freighter work to sub-contractors ASL Airlines and AirBridgeCargo.

The last revenue cargo flight was operated on June 30 between Liege and Tel Aviv as flight LY872 with the pictured Boeing 747-412F 4X-ELF (msn 26563).

El Al has been offering 747-400F freighter service since 2010.

Top Copyright Photo: El Al Cargo (El Al Israel Airlines) Boeing 747-412F 4X-ELF (msn 26563) LGG (Rainer Bexten). Image: 909944.

El Al aircraft slide show: