Tag Archives: El Al Israel Airlines

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:

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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:

El Al Israel Airlines and Alaska Airlines expand their global partnership as El Al starts San Francisco service

El Al Israel Airlines and Alaska Airlines today expanded their commercial relationship to include a reciprocal frequent flyer agreement. The agreement was signed by the CEOs of each airline at a ceremony soon after the arrival of the first El Al flight from Tel Aviv to San Francisco and was attended by San Francisco Bay Area dignitaries and civic leaders. This agreement is in addition to the codeshare agreement that recently came into effect between the airlines allowing EL AL to place its “LY” code on various Alaska Airlines “AS” flights in the U.S.

The codeshare agreement which has been available for sale as of April 28 for flights as of May 5 includes flights from Newark, Los Angeles and now San Francisco onto a host of Alaska Airlines flights.  From San Francisco, El Al will place its code on flights to Seattle/Tacoma; San Diego; Portland, Oregon; Honolulu; Los Angeles; Palm Springs, California; Albuquerque, New Mexico; Austin, Texas; Dallas (DAL); Santa Ana, California, Everett, Washington, Kansas City, Missouri; Salt Lake City; Kona, Hawaii and Las Vegas. Upon regulatory approval, will also include flights to various points in Mexico.

The El Al flights will operate three times weekly flying a state-of-the-art 787 Dreamliner, offering Business, Premium and Economy service. The flights from Tel Aviv will depart on Monday, Wednesday and Friday at 0105 and arrive in San Francisco on the same day at 0600 for a flight time just under 15 hours. The flights from San Francisco to Tel Aviv will operate on Monday and Wednesday departing at 2000 for arrival the next day at 1940 and on Saturday night with a 2245 departure arriving in Tel Aviv at 2225 the next day for a flying time of just over 13 and a half hours.

El Al’s 787 4X-EDD receives a special livery for new flights to Las Vegas and San Francisco

 

El Al's 2019 "San Francisco" promotional new destination livery

El Al Israel Airlines has introduced this special livery on 4X-EDD. The unique color scheme was designed by illustrator Shay Vadel and art director Amir Assayag.

The special livery depicts landmarks from both Las Vegas (right) and San Francisco (left), two new routes for the carrier.

The Tel Aviv – San Francisco route starts on May 13, 2019.

The Tel Aviv – Las Vegas route starts on June 14, 2019.

Copyright Photo: El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDD (msn 63392) (San Francisco) YYZ (TMK Photography). Image: 946346.

El Al aircraft slide show:

El Al Israel Airlines reports its financial results for 2018 and fourth quarter 2018, Boeing 747-400s to be retired

El Al Israel Airlines Boeing 747-412 4X-ELE (msn 26551) LHR (SPA). Image: 944783.

El Al Israel Airlines issued this reported today:

  • Despite the increased competition at Ben Gurion Airport, the Company’s (TASE: ELAL) revenues from passenger increased by approx. USD $54 million.
  • However, in view of the increase in fuel prices, the Company lost approximately USD $52 million in 2018.
  • The Company’s revenues for 2018 amounted to approx. USD $2,142 million compared to approx. USD $2,097 million last year (reflecting an increase of USD $45 million).
  • The Company’s revenues for the fourth quarter of 2018 amounted to approx. $493 million compared to approx. USD $512 million for the fourth quarter of 2017 (reflecting a decrease of USD $19 million).
  • The Company recorded a loss before tax of approx. USD $68 million and a net loss of approx. USD $52 million for 2018 (compared to a profit before tax of USD $9 million and a net profit of USD $6 million for 2017, respectively).
  • The Company recorded a loss before tax of USD $41 million and a net loss of USD $32 million for the fourth quarter of 2018 (compared to a loss before tax of USD $38 million and a net loss of USD $30 million for the fourth quarter of 2017, respectively).

Gonen Usishkin, El Al’s CEO:

“Following the continued implementation of the Open Sky policy, in 2018 the competition at Ben Gurion Airport intensified, with an emphasis on European and Far East airlines. The number of passengers passing through Ben Gurion Airport grew from 20.2 million to 22.3 million. Particularly conspicuous is the Government’s decision to allow Air India to fly over Saudi Arabia using a short route, whereas the Company is not allowed to fly this route, thereby eroding the Company’s profitability from this route.

Notwithstanding the competition, the Company maintained a Load Factor of 84% and increased its revenues from passengers by USD 54 million. This year, a number of factors were joined together, in particular an approx. 30% increase in fuel prices (reflecting an expenditure increase of USD $97 million), which caused the said loss.

Upon completion of replacing the 767 and 747 aircrafts with the Dreamliners, the Company will be able to realize its operational efficiency potential (pilot expenses, saving fuel consumption and maintenance expenses) and significantly contribute to improve the product and upgrade the customer experience, alongside other steps taken by the Company.

Despite the results, the Company is in the process of implementing its business plan, and this is the place to thank all the Company’s employees who make effort to return El Al to profitability, improve all operational parameters and provide excellent service to its customers.”

In order to improve its business results, the Company established a strategic plan focusing on four core areas of operations:

The Company’s activities to improve the product and customer experience

The Company is going through a strategic process of improving customer experience and, for this purpose, invests considerable resources in most areas of operations, by means of the following activities:

  • Receiving five 787-9 Dreamliners. As of today, the Company operates eight 787-9 aircrafts.
  • Closing the 767 aircraft fleet, having been in the Company’s service for 36 years.
  • Launching a fast WI-FI system. Currently, the Company operates 18 airplanes with an internet system.
  • Recruiting the Michelin Star chef, Shahaf Shabtai, to act as the Company’s chef. Chef Shabtai devised a new high quality menu dedicated to El Al.

The Company’s activities in the commercial area

The Company continues to develop a route network adapted to the Israeli passenger and offers new products to the market, as follows:

  • Launching the route to Lisbon, adding activities on selected routes (such as Newark) and refreshing SunDor route network (both routine and seasonal activity).
  • Expanding the route network through new codeshare agreements with Vietnam Airlines and LOT (in early 2019) and expanding agreements with other airlines.
  • Launching price categories adapted to passengers flying to Europe, the Far East and Africa.
  • Extending the Branded Credit Card (FlyCard) Cooperation Agreement entered into with CAL, Diners and Poalim Express, and adding a new strategic partner – Mastercard.

The Company’s activities in the operational area

The Company is acting to strengthen its competitiveness through streamlining alongside improving operational excellence:

  • In 2018, the Company launched the “Ofek 2021” Program, aiming to enhance income resources while improving and streamlining operational processes within the Company.
  • The Company is in a multi-year process of replacing several operational and commercial IT systems, and this year successfully completed the implementation of a passenger revenue management system, automated marketing system and payroll system.
  • The Company has successfully implemented the new Flight Time Limitation regulations (FTL).

The Company’s Activities relating to people and processes

Investing in the Company’s personnel and the community contributes to the stability of the organization and forms a strategic basis for improving customer experience:

  • Stabilizing labor relations following the agreement entered into with the Company’s pilots, enabling operational efficiency and flexibility vis-à-vis pilots’ lifestyle, as well as optimal planning for aircrew personnel.
  • El Al takes particular pride in its PL+ rating assigned to it by “Ma’ala”, following an extensive activity for the community, inter alia, by raising money on flights for the benefit of “ALUT ALE” organization, adopting the Paratroopers Battalion 202, volunteering activities for the benefit of the IDF Disabled Veterans Organization, “Krembo Wings”, children with cancer, holocaust survivors, children communities across Israel, and more.

Focus in 2019 onwards

The Company has reported in the past a number of initiatives to enhance income and reduce expenses, along with actions intended to improve operational excellence:

  • Receipt of six additional 787 aircrafts (a total of 14 aircrafts by the end of 2019) to significantly improve the product and customer experience. The Company expects that by the end of 2019, the average age of the aircraft fleet will decrease for the first time below 10 years.
  • Closing the 747-400 aircraft fleet.
  • Additional expansion of the route network; by adding new routes to San Francisco, Las Vegas, Manchester and Niece, alongside expansion of existing routes.
  • Preparations for opening a route to Chicago in 2020.
  • Expansion of cargo transport in the belly of the 787 aircrafts.
  • A full-fleet interior renovation of the 737-800 aircraft fleet, including replacement of seats, improvement of luggage storage areas and replacement of interior lighting.
  • Start a project of renewal interior renovation of 777-200ER aircraft fleet, including replacement of seats, entertainment system, installation of WI-FI system and renovation of the overall appearance of the aircraft cabin.
  • Update to the Frequent Flyer Club program and upgrade of internet and mobile digital platforms.
  • Modification of the model of compensation to travel agents.
  • Expansion of activities under the “Ofek 2021” program, inter alia, the chain of logistics, maintenance array and passenger service.
  • Implementation of the collaboration agreement with CAL, Diners, Poalim Express and Mastercard.

Top Copyright Photo: The last Boeing 747-400 is due to be retired by late 2019. El Al Israel Airlines Boeing 747-412 4X-ELE (msn 26551) LHR (SPA). Image: 944783.

El Al aircraft slide show:

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El Al to operate summer seasonal service to Orlando

"Beer Sheva"

El Al Israel Airlines will operate summer seasonal flights next summer on the Tel Aviv – Orlando route. The seasonal route will operate weekly with Boeing 787-9 aircraft from July 2 through August 20, 2019 according to Airline Route.

Top Copyright Photo (all others by the airline): El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDH (msn 38085) LHR (SPA). Image: 945322.

El Al aircraft slide show:

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