Category Archives: El Al Israel Airlines

El Al is coming to Las Vegas and San Francisco

Celebrating 70 years of flying

El Al Israel Airlines has announced the only nonstop flights between Las Vegas and Tel Aviv, Israel starting on June 14, 2019. The weekly nonstop flight (roundtrip) will utilize a new Boeing 787-9 Dreamliner.

Also, for Northern California residents and neighboring states, as of May 13, 2019, El Al will operate three weekly nonstop flights from San Francisco to Tel Aviv Israel on a Boeing 787 Dreamliner aircraft offering Economy, Premium, and Business Class.

Top Copyright Photo (all others by El Al): El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDC (msn 38086) (70 Years) LAX (Michael B. Ing). Image: 944741.

El Al aircraft slide show:

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El Al Israel Airlines announces 2Q and 1H financial results

Named "Tel Aviv - Jaffa", delivered on February 22, 2018

El Al’s revenues in the second quarter of 2018 amounted to approx. $547 million (US) compared to approx. $541 million in the second quarter of 2017, indicating a growth of about 1%;

Gross profit amounted to approx. $69 million compared to approx. USD 107 million in the second quarter of 2017;

Loss from operation amounted to approx. $13.7 million compared to a profit of $27 million in the second quarter of 2017;

Net loss in the second quarter of 2018 amounted to approx. $18.2 million compared to profit approx. $16.4 million in the second quarter of 2017;

Market share from passenger traffic at Ben Gurion Airport in the second quarter of 2018 decreased to approx. 26.7% compared to approx. 29.5% in the second quarter of 2017;

Aircraft Load Factor in the second quarter of 2018 stood at 83.5% compared to 84.3% in the second quarter of 2017;

The Company’s available seat kilometer (ASK) increased by about 3% and revenue Passenger Kilometer (RPK) increased by about 2%;

Average total income per RPK (Yield) dropped by about 1%;

The Company’s cash and deposit balances as of June 30, 2018 totaled approx. USD 280 million;

The Company’s equity as of June 30, 2018 totaled approx. USD 267 million;

Cash flow from operating activities in the second quarter of 2018 amounted to approx. USD 56 millioncompared to approx. USD 101 million in the second quarter of 2017;

EBITDA amounted to USD 25.4 million compared to USD 70 million in the second quarter of 2017;

The Company’s revenues for the first six months of 2018 amounted to approx. USD 1,007 millionCompared to USD 959 million in the first six months of 2017, reflecting a growth of about 5%;

Loss from operation for the first six months of 2018 amounted to approx. USD 66.3 million Compared to USD 7.1 million in the first six months of 2017;

Net loss for the first six months of 2018 amounted to approx. USD 62.1 million Compared to USD 13.6 million in the first six months of 2017.

Gonen Usishkin, El Al’s CEO:

“During the second quarter of 2018, EL Al recorded an increase in revenues compared to the second quarter of 2017, while coping with the challenges and the intensified and increased competition posed by foreign airlines, in particular low cost airlines.

During the second quarter of 2018, the Company dealt, among others, with the sharp increase in fuel prices, which was the main reason for the increase in expenses in the second quarter of the year.

We continue implementing our Dreamliner Acquisition Program. Thus far, we have received six aircrafts, the last of which arrived yesterday, and we are about to receive another aircraft by the end of 2018. Our Aircraft Acquisition Program is being implemented as planned, in line with the schedule agreed upon, and the Company continues to take the necessary steps required by the program. The demand for seats on Dreamliners is high and customer satisfaction meets the Company’s expectations.

Sales of airline tickets to European destinations commenced in the second quarter for flights starting in October, based on our new sales model of which we have already announced. The new model allows the passenger to choose the flight package best suites to his needs, to all destinations in Europe, and pay for the package based on his choice. This model is expected to enhance EL AL’s ability to more efficiently compete with all players in the European market, in particular, low cost airlines.

Once the pilot phase has been completed, we started offering Wi-Fi service on flights to Europe on 15 of the Company’s airplanes, and we intend to expand the service to other airplanes and destinations.

EL AL’s Frequent Flyer Club, both in Israel and overseas, and in particular the FLYCARD credit card, serve as a significant growth engine, which is translated into an impressive expansion trend. The number of credit card holders currently stands at about 280 thousand and the number of EL AL’s Frequent Flyer Club members has now reached the 2 million mark. In the last month we announced a modification to the terms of accumulation and redemption of points by club members and credit card holders, which will be effective as of April 2019.  This modification simplifies the accumulation method, which will now be based on cash expenses, and expands the possibilities to redeem points.

We keep accelerating the optimization of all wide-body aircrafts. To enhance customer service following the acquisition of the Dreamliner fleet, El Al is preparing for an early removal from service of the 767 aircraft fleet by the beginning of 2019.”

Dganit Palti, El Al’s CFO, noted as follows:

“In the second quarter of 2018, the Company recorded further growth in revenues despite the challenges of increased competition, expressed by the volume of traffic and the number of active players at Ben Gurion Airport. Alongside this, an increase in expenses was recorded, mainly due to the rise in jet fuel prices and the new Dreamliner aircrafts’ lease expenses.

In June 2018, the Company took a USD 145 million loan from foreign banks and Japanese investors to finance the acquisition of the 787-9 aircraft received this month.

Furthermore, on August 10, 2018 the Company received another 787-9 aircraft under ownership, which it financed with a USD 125 million loan from a foreign bank, backed by a UKEF guarantee. With this, the Company has six aircraft of this model – three owned and three leased.

The Company’s cash balances of USD 280 million and its cash flow from operating activities to be used for the continued implementation of the Acquisition Program.”

 

Highlights for the three and six-month periods ended June 30, 2018 (in USD millions):

January-June

April-June

2018

2017

Change

2018

2017

Change

Operating revenues

1,007

959

6%

547

541

2%

Operating expenses

(907)

(810)

13%

(478)

(434)

11%

Gross profit

100

148

(33%)

69

107

(36%)

EBITDA

12

81

(85%)

25

70

(64%)

Profit (loss) before taxes on income

(80)

(17)

(373%)

(23)

22

(207%)

Profit (loss) for the period

(62)

(14)

(359%)

(18)

16

(211%)

 

Profit and Loss Results for the three months periods ended June 30, 2018

1. Operating revenues – operating revenues in the reported period increased by approx. 1.1%, indicating an growth of approx. USD 5.8 million compared to the second quarter of 2018, It should be noted, that passenger revenues in the reported period decreased by 3.4 million USD as a result of the implementation of IFRS-15, according to which payments for compensation to passengers have to be recorded as a revenue reduction instead of an expense within the operating .After neutralizing this revenues from passengers increased by approx. 1.8%, representing a growth  of approx. USD 8.7 million.  This increase in passenger revenues is primarily attributable to the growth in passenger revenue per kilometer (RPK) flown by the Company and a positive impact of exchange rates of currencies in which some of the Company’s sales transactions are made, in relation to the dollar, which were partially offset by a decrease in the yield per ton-kilometer. Cargo revenues decreased by approx. 1.1% (about USD 0.4 million) and other revenues decreased by approx. USD 2.4 million.

2. Operating expenses – operating expenses in the reported period increased by approx. USD 43.9 million, indicating a growth of about 10.1% compared to the second quarter of 2017. The increase in operating expenses is primarily attributable to an increase of USD 31.4 million in jet fuel expenses; an increase of USD 9.5 million in aircraft lease expenses, mainly due to lease of three 787-9 Dreamliners that were not included among the Company’s aircrafts in the second quarter of 2017; and an increase of USD 5 million in expenses for fees, services and airspace transit fees, mainly due to the increased fee rates paid by the Company to the Israel Airport Authority for its operations at Ben Gurion Airport, and the strengthening of the euro compared to the dollar. It should be noted that the increase in operating expenses was offset by the presentation of payments in respect of passenger compensation as a decrease in income, as mentioned above.

3. Jet fuel expenses – the Company’s jet fuel expenses in the second quarter of 2018 increased by approx. USD 31.4 million (an increase of 29.5%) compared to the second quarter of 2017, mainly as a result of the increase in jet fuel prices, offset in part by the change in the results of jet-fuel hedging transactions.

The table below demonstrates the impact of jet fuel expenses on the Company’s results for the second quarter of 2018, including the impact of hedging transactions (in USD millions):

 

2018

2017

Difference

Jet fuel expenses for the period (before hedging impact)

147.0

106.3

40.7

Impact of jet fuel hedging transactions on profit and loss

(9.1)

0.2

(9.3)

Total jet fuel expenses (including hedging impact)

137.9

106.5

31.4

 

4. Selling expenses – selling expenses in the second quarter of 2018  increased by approx. USD 2.3 million compared to the second quarter of 2017, mostly due to an increase in the Company’s distribution expenses. It should be noted that USD 0.8 million represents an increase in distribution expenses due to the change in the accounting presentation of fees for interline sales, previously presented as a decrease in revenues.

5. Financing expenses – net financing expenses in the second quarter of 2018 amounted to approx. USD 8.7 million, compared to USD 4.6 million in the second quarter of 2017. This increase is primarily attributable to an increase in exchange rate differences in respect of the Company’s NIS balances, and the increase in interest expenses following the increase in the amount of loans taken by the Company over the second quarter of 2018 compared to the second quarter of 2017, as a result of receiving a 787-9 Dreamliner under ownership at the end of March (the second aircraft was received by the Company towards the end of the second quarter, without affecting financing expenses).

6. Loss before tax  – loss before tax in the reported quarter totaled approx. USD 23.4 million compared to profit before tax of approx. USD 21.8 million in the second quarter of 2017.

7. Loss for the period – loss for the period amounted to approx. USD 18.2 million compared to a profit of USD 16.4 million in the second quarter of 2017, which constituted 3% of the turnover.

Profit and Loss Results for the six-month period ended June 30, 2018

1. Operating revenues – operating revenues in the reported period increased by approx. USD 48.5 million, indicating a growth of about 5.1% compared to the second quarter of 2017. It should be noted, that passenger revenues in the reported period decreased by 6.8 million USD as a result of the implementation of IFRS-15, according to which payments for compensation to passengers have to be recorded as a revenue reduction instead of an expense within the operating expenses. After neutralizing this, revenues from passengers increased by approx. USD 42.7 million (5.0%) and revenues from cargo increased by approx. USD 6.6 million (9.2%). The increase in passenger revenues is primarily attributable to the growth in passenger revenue kilometer (RPK) flown by the Company, the increase in the yield per ton-kilometer and the positive impact of exchange rates of currencies in which some of the Company’s sales transactions are made, in relation to the dollar. The increase in cargo revenues in the reported half year is due to the increase in cargo volume as well as the impact of changes in exchange rates and a change in the implementation of an accounting standard, offset by price reduction.

2. Operating expenses – operating expenses in the reported period increased by approx. USD 103.7 million (a 12.8% growth) compared to the second quarter of 2017. This increase is attributable to a number of factors, including, inter alia, an increase of USD 54 million in jet fuel expenses, as elaborated below as well as increase of USD 18.2 million in aircraft lease expenses, mainly due to the receipt of three 787-9 Dreamliners. Moreover, operating expenses in the first half year were affected by the following factors: the growth in operations, a USD 10 million increase in payroll expenses mainly due to the impact of the strengthening of the shekel compared to the dollar, the Minimum Wage Update and a USD 10.7 million increase in expenses for fees and services, mainly as a result of the increased fee rates paid by the Company to the Israel Airport Authority for its operations at Ben Gurion Airport, among others, due to a decline in the Company’s market share at Ben Gurion Airport, which led to a decrease in discount rates obtained by the Company. It should be noted that the increase in operating expenses was offset by the presentation of payments in respect of passenger compensation as a decrease in income, as mentioned above.

The table below demonstrates the impact of jet fuel expenses on the Company’s results for the second quarter of 2018, including the impact of hedging transactions (in USD millions):

 

2018

2017

Difference

Jet fuel expenses for the period (before hedging impact)

264.5

197.8

66.7

Impact of jet fuel hedging transactions on profit and loss

(13.5)

(0.8)

(12.7)

Total jet fuel expenses (including hedging impact)

251.0

197.0

54.0

 

3. Loss for the period – loss before tax for the period amounted to approx. USD 80.3 million and loss after tax amounted to approx. USD 62.1 million reflecting 6.2% of the turnover, compared to a loss before tax of USD 17.0 million in the second quarter of 2017, and loss after tax of USD 13.6 million, reflecting 1.4% of the turnover.

Balance Sheet Data as of June 30, 2018:

1. Current assets – amounted to approx. USD 577 million, indicating a growth of approx. USD 58.5 million compared to their balance as of December 31, 2017. This growth mostly resulted from a seasonal increase in accounts receivable and prepaid expenses as well as increase in the fair value of jet fuel derivatives.

2. Current liabilities – totaled approx. USD 1,008 million, indicating an increase of approx. USD 51.7 million compared to their balance as of December 31, 2017. The change is attributable to a seasonal increase in prepaid revenues from sales of airline tickets, offset in part by a decrease in accounts payable balances as well as provisions and liabilities to employees (among othes, due to a payment in respect of the compromise agreement with the Assessment Officer).

3. Working capital – the Company had a working capital deficit of approx. USD 431.1 million compared to a deficit of approx. USD 437.9 million as of December 31, 2017. It should be noted that a substantial part of the working capital deficit does not reflect short-term cash flows, as explained below. As of June 30, 2018, the Company’s current ratio increased to 57.2% compared to 54.2% as of December 31, 2017.

As of June 30, 2018, the working capital deficit consists of substantial components included in the current liabilities section and characterized by current business cycle; however, the Company is not required to use cash-flow sources in the short term in order to repay these components: prepaid revenues from sale of airline tickets and the Frequent Flyer Club totaling approx. USD 433 million, to be settled by providing future flight services, and liabilities to employees for vacation pay in the amount of approx. USD 45 million, which are expected to be paid upon retirement but classified as a short-term liability in accordance with accounting principles. Current liabilities also include loans to finance advance payments on the 787 aircrafts, to be repaid through long-term financing obtained upon receipt of aircrafts. As of June 30, 2018, the amount attributable to these loans of the total current liabilities stands at approx. USD 65 million.

4. Non-current assets – amounted to approx. USD 1,531.9 million, showing a growth of approx. USD 198.9 million compared to their balance as of December 31, 2017, mainly due to the receipt of two 787-9 Dreamliners owned by the Company during the reported period and advance payments for the acquisition of the 787 aircrafts that have not yet been received, less current depreciation.

5. Non-current liabilities – totaled approx. USD 834.0 million, reflecting an increase of approx. USD 217.1 million compared to December 31, 2017. This increase was primarily attributable to two loans obtained by the Company to finance the acquisition of two 787-9 Dreamliners.

6. Equity – amounted to approx. USD 266.8 million. The decrease of approx. USD 11.4 million compared to equity as of December 31, 2017 was mainly attributable to the loss for the half year, which was partially offset by a USD 35.7 million increase in equity following the implementation of IFRS 15 – “Revenue from Contracts with Customers” (see note 7.A to the condensed financial statements), and improvement in the cash flow hedge fund, due primarily to jet fuel transactions carried out by the Company.

Top Copyright Photo (all others by El Al): El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDC (msn 38086) PAE (Nick Dean). Image: 941027.

El Al aircraft slide show:

El Al takes delivery of its 6th Boeing Dreamliner in a 1964 retro livery

El Al Israel Airlines is celebrating 70 years of flying. Yesterday, August 13, 2018, the company accepted the pictured sixth Boeing 787-9 Dreamliner registered as 4X-EDF (msn 63394) and named “Rehovot”. The new airliner is painted in a 1964 retro livery for the company.

All images above by El Al.

El Al aircraft slide show:

"Rehovot" in 1964 retro livery, delivered on August 13, 2018

Above Copyright Photo: El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDF (msn 63394) (70th Anniversary) PAE (James Helbock). Image: 943201.

El Al to introduce a retro scheme on the next Boeing 787-9 Dreamliner

El Al Israel Airlines will soon delivery of its newest Boeing 787-9 Dreamliner (4X-EDF). The newest addition is painted in a retro livery as part of its 70th anniversary celebrations.

The airline has issued the first photos of the new bird.

Photos: El Al.

El Al launches new in-flight Wi-Fi system, powered by Viasat

El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDB (msn 42117) LHR (SPA). Image: 941028.

El Al Israel Airlines announced it officially launched its new fast, reliable commercial in-flight Wi-Fi service, powered by global communications company, Viasat.

El Al was Viasat’s European launch customer. Since first announcing their relationship, both companies undertook broad market studies focused on in-flight Wi-Fi passenger demand, engagement and service offerings, including a customer beta phase to determine internet package types. El Al also began to re-energize its fleet taking on new Boeing 787 Dreamliners—a recent addition to Viasat’s certified platforms.

As of today, 15 El Al aircraft have been outfitted with Viasat’s latest equipment, providing high-speed connectivity to El Al’s mix of Boeing 787 Dreamliners, Boeing 737-900 aircraft and Boeing 737-800 planes. By mid-2020, EL AL expects to have the majority of its fleet connected with the Viasat service.

First high-speed Wi-Fi flight
Earlier this week, El Al held its “inaugural high-speed Wi-Fi service flight,” which flew from Tel Aviv to Paris on one of its new Dreamliner aircraft. There were 128 devices connected—many that were streaming movies, videos, music and even the World Cup semifinal. More than half of the passengers were filming and streaming videos—some via Facebook Live, while others were capturing and uploading videos and pictures of their journey, which they posted to multiple social media sites from Facebook and Instagram to Twitter.

Service packages
El Al will offer three internet service packages:

  • Basic: Passengers can use their smartphones and tablets for instant messaging applications such as WhatsApp, to access email and browse El Al’s free sites. The package is free during the launch period.
  • Social: This package builds on the Basic plan, letting passengers use their smartphones and tablets to access instant messaging applications, email, free site browsing and for viewing short videos of up to three minutes. This package cost per passenger per flight is $9.99, with discounted rates for Matmid Frequent Flyers and FLYCARD holders.
  • Business: This premium plan lets passengers use their smartphones, tablets and laptops for instant messaging, email and free site browsing. Unlike the other plans, users of the Business package gain additional connectivity capabilities, including streaming movies, music and more as well as VPN access. Package cost per passenger per flight is $19.99, also with discounted rates for Matmid Frequent Flyers and FLYCARD holders.

During the introductory trial period for international flights from Europe to North America, El Al will offer the service free of charge until the fourth quarter of 2018.

About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. For more than 30 years, Viasat has helped shape how consumers, businesses, governments and militaries around the world communicate. Today, the Company is developing the ultimate global communications network to power high-quality, secure, affordable, fast connections to impact people’s lives anywhere they are—on the ground, in the air or at sea.

Copyright Photo: El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDB (msn 42117) LHR (SPA). Image: 941028.

El Al aircraft slide show:

 

Reuters: El Al Airlines drops plans to buy Israir

Named "Bat Yam"

From Reuters:

El Al Israel Airlines said on Wednesday it had scrapped its bid to acquire smaller low-cost rival Israir from IDB Tourism amid opposition from competition regulators.

A year ago, El Al – Israel’s flag carrier – reached a deal for its Sun d’Or unit to pay up to $24 million for Israir, which flies to the southern resort of Eilat and a host of European cities.

Sun d’Or flies to about 17 destinations in France, Italy, Switzerland, Greece and elsewhere in Europe.

Earlier this year, Israel’s Anti-Trust Authority said it opposed the merger since it would prevent El Al from operating flights to Eilat and lead to competitive concerns resulting from El Al’s control of security services at all Israeli airlines.

El Al, which argued that flights to Eilat were economically unjustified, appealed against the decision but decided to drop that appeal on Wednesday.

“In view of the passage of time from the signing of the purchase agreement and the expected time to complete the appeal process the parties were required to negotiate the commercial terms in which the agreement could be kept in place,” El Al said.

“Since the negotiations failed and no agreement was reached, the parties … withdrew the appeal.”

The withdrawal came hours before a preliminary hearing in front of an anti-trust tribunal.

“El Al and Israir will therefore be unable to consummate the merger,” the anti-trust authority said. (Reporting by Steven Scheer; Editing by Mark Potter)

Top and Below Copyright Photos: The newest Dreamliner is named “Bat Yam”. El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDE (msn 63393) PAE (Nick Dean). Image: 942476.

Named "Bat Yam"

El Al aircraft slide show:

El Al announced its financial results for the first quarter of 2018, will retire the Boeing 767s

To be replaced with Boeing 787s, will be replaced in late 2018

El Al Israel Airlines reported an 11% increase in revenues to USD $464 million in the first quarter of 2018; a 2.5% increase in the number of passengers; an increase in load factor to approx. 83.8%; and a 4.3% increase in yield.

Alongside this, the Company recorded an increase of 15% in operating expenses, attributable primarily to the growth in operations; an increase in fuel expenses totaling approx. USD 23 million, mainly due to the increase in fuel price; an increase of approx. USD 7 million in payroll expenses following the erosion of the US dollar against the New Israeli Shekel; and an increase in minimum wage.

Net loss for the quarter amounted to USD $44 million.

Due to the complex reality faced by the Israeli aviation industry, particularly vis-à-vis low cost carriers, and in view of the challenges awaiting the Company in the near future, including intensifying competition and increase in fuel prices, EL AL management has resolved to take a number of measures to adjust its activities to these challenges:

Deepening the implementation of a business efficiency plan across the Company, including reducing expenses and increasing revenues.

Changing the compensation model for agents in Israel and abroad – The company adapts the trend prevailing among most of the world’s leading airlines, by changing the compensation model between airlines and travel agents, and will move to a new model in which no base commission will be paid to agents, which currently stands at 5% in Israel and a variable percentage in countries where it operates, as of June 1st 2019.

As part of the Company’s decision to accelerate the optimization process of all wide-body aircraft and in order to enhance customer service and becoming more efficient with the renewal of the Dreamliner fleet, the Company is currently engaged in scheduling the early removal 767 fleet from service by the end of 2018 instead of 2020.

Due to the early removal from service of one aircraft of the 767 fleet that was damaged at Ben Gurion Airport, it was decided to postpone the launch of the San Francisco route to the second quarter of 2019.

In April 2018 the Company started selling flight tickets to destinations in Europe based on the new model, which allows Economy Class passengers to choose from three types of flight product packages at various prices, tailored to their needs. This model allows the Company to more efficiently compete with all players in the market, in particular low-cost airlines.

  • Operating revenues amounted in the first quarter of 2018 to approx. USD 464 million, compared to USD 418 million in the first quarter of 2017, reflecting an increase of approx. 11%.
  • The increase in revenues was primarily attributable to an improvement in a number of significant items:
    • The number of tier segments increased in the first quarter of 2017 by approx. 2.5% compare to last year; available seats per kilometer (ASK) increased by approx. 3.1%; the Company’s operations in RPK terms (revenue passengers per kilometer) grew by approx. 3.3%; the Company’s operations in terms of flight hours increased by approx. 2.7%
    • Aircraft load factor stood at approx. 83.8%, compared to 83.6% at the first quarter of 2017;
    • Average yield per RPK increased by approx. 4.3% compared to the first quarter of 2017.
  • El Al market share of traffic at Ben Gurion Airport amounted to approx. 27.9%. In the first quarter of 2018, the Company recorded an increase of 2.5% in the number of passengers flown by the Company, with passenger traffic at Ben Gurion Airport increasing by higher rate of 19%.
  • Loss before tax for the first quarter of 2018 amounted to approx. USD 57 million, compared to a loss before tax of approx. USD 39 million in the first quarter of 2017.
  • Net loss for the first quarter of 2018 was approx. USD 44 million, compared to a net loss of approx. USD 30 million in the first quarter of 2017.
  • The increase in loss is due primarily to the increase in jet fuel costs as a result of an increase of 25% in jet fuel price and an increase in payroll expenses following the erosion of the US dollar against the New Israeli Shekel.
  • Cash flow from operating activities in the first quarter of 2018 amounted to approx. USD 14 million compared to approx. USD 77 million in the first quarter of 2017. The difference in cash flows was due primarily to the increase in net loss and a payment of approx. USD 22 million to the tax authorities in respect of an audit of assessments, the expense for which was recorded in the previous year.
  • EBITDA amounted to USD -14 million (loss), compared to USD 30 million in the first quarter of 2017.
  • EBITDAR amounted to USD 14 million, Compared to USD 30 million in the first quarter of 2017.
  • The Company’s cash balance as of March 31, 2018 totaled approx. USD 243 million.
  • The Company’s equity as of March 31, 2018 totaled approx. USD 273 million.

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

“During the first quarter of 2018, EL AL recorded an 11% growth in its revenues compared to the first quarter of 2017. The Company increased its volume of operations, notwithstanding the numerous challenges arising from the Open Sky policy and the intensifying competition posed by foreign airlines, in particular low-cost carriers, and successfully improved its yield by about 4%.

“However, the Company reported an increase in expenses, attributable mainly to the rise in fuel price and changes in exchange rates, thus, at the bottom line, it completed the first quarter, a quarter that is typically characterized by seasonal weakness, with a net loss of approx. USD 44 million.

“In view of the changing reality and growing competition, as well as the increase in fuel prices, changes in exchange rates and regulatory restrictions, EL AL is currently in the midst of an accelerated optimization process, both in terms of its scope and the speed of its implementation. Within this framework, we announced a number of significant steps and more decisions are expected to be made in major areas which has an efficiency potential. The program is comprehensive and reviews all fields of activity and business areas, with the aim of increasing revenues and considerably reducing expenses in order to establish a coherent path for improving results, through a multi-year process.

“The Company is currently in the process of receiving the Dreamliner aircrafts. To date, we have received 4 airplanes and about to receive 3 more airplanes by the end of 2018 .The aircrafts acceptance program is properly implemented in compliance with prescribed schedules, and the Company continues to take all necessary steps required by the program. The demand for seats on the Dreamliner aircrafts is impressive and it certainly meets our expectations regarding the revenues from each service department as planned.”

Dganit Palti, El Al’s CFO, announced today as follows:

“Three of the five Dreamliner aircrafts that the Company is about to be equipped in 2018 will be owned by the Company. One of them was received in March and the other two will be delivered in June and August. The Company is currently working to expand the sources of financing for the aircraft, and is currently raising from a number of international financial entities long-term loans at attractive interest rates and at high financing rates.

“The Company also first contracted LOI with investors from Japan, which specialize in financing an equity tranche to aircrafts for airlines companies around the world, to finance the equity tranche to the aircraft expected in June, under comfortable conditions.

“The Company completed the first quarter of 2018 with cash and deposits balances of USD 243 million, indicating its financial stability.”

Copyright Photo: El Al is now planning to retire the last Boeing 767-300 at the end of 2018. El Al Israel Airlines Boeing 767-3Y0 ER 4X-EAP (msn 24953) LHR (SPA). Image: 924583.

El Al aircraft slide show: