The profits of El Al Airlines in the second quarter of 2023 reached a record of almost 59 million dollars. This was revealed by the CEO of El Al, Dina Ben Tal Gnansia, in a festive ceremony held by the company in the hall of the Stock Exchange. Today marks 20 years since the first public offering of El Al, and the start of trading in El Al shares. Therefore, the stock exchange honored the management of El Al by activating the button to start trading the daily
The Vice President of the Stock Exchange, Hani Shetrit, greeted the guests from El Al and noted that the value of the company on the first trading day in 2003 was approximately NIS 390 million, and today the value of the company is approximately NIS 1.6 billion.
The chairman of El Al’s board of directors, Amikam Ben Zvi, greeted the guests and employees and declared: “I wish the investors to see the fruits of their investment, and I wish for the El Al company that it will continue to grow… without dormant years.”
El Al’s VP, Shlomi Am Shalom, opened the press conference to present the latest quarterly report, saying: “Today we are celebrating three events: the first – the 75th anniversary of the founding of El Al. It excites me that the history of El Al is integrated into the history of the country. El Al Al took a significant part in some of the historical events that shaped the State of Israel. Starting with the bringing of the first President Weizmann, the bringing of Aron Herzl, the peace agreement with Egypt, ‘Operation Moses’ to uplift the Jews of Ethiopia, and more. In addition, we are celebrating the 20th anniversary of the privatization of El Al and the start of trading in its shares In the stock market. And in addition, we are also celebrating one year since our return to activity after the heavens opened at the end of the Corona epidemic.”
Shlomi also made a presentation in which he boasted about flying more than 5 million passengers to 60 destinations in the world this year, some of them new destinations that opened only in the last year. The company is proud of the fact that one out of four passengers in Israel flies on Al Al, and on routes to the USA even one out of three passengers.
El Al revealed the quarterly report today. The CEO of El Al, Dina Ben Tal Ganancia, said that the last quarter was the best of all time for El Al. And this despite the fact that the company did not return to full activity after the Corona crisis, but it is currently operating at only 87% capacity. “The meaning is that we have more capacity that can be utilized in the near future, and further increase our activity and revenues.”
She addressed the investors and noted that at the beginning of the year El Al shares registered a sharp jump of about 85%, and of about 180% from the beginning of 2022. “I recommend that you continue to invest in El Al, and suggest that others also invest in El Al.”
Dina raised a question: “How do you maintain such profitability and stability throughout the year and for all the years?”. She replied: “We work according to a detailed and focused five-year plan. Only 5 months have passed since we presented the five-year plan, and since then we have achieved 10 goals according to the plan, as you can see in this presentation that accompanied her speech:
According to the five-year plan, El Al needs to reach 7.7 million passengers in 2028.
Later in her review, she reported on changes in the aircraft fleet and the plans to acquire new aircraft. “The target in the five-year plan is to reach 47 aircraft by 2028. Among the wide-body aircraft, the target was to reach 22 Dreamliner aircraft by 2028, and we have completed three quarters of this target. The last aircraft we received recently landed with SAF green fuel, according to El Al’s plan for ESG activities to improve quality The environment. 4 Triple 7 aircraft are undergoing a thorough upgrade to the level of a 787 in the passenger cabin. We currently have 24 Boeing 737 narrow body aircraft, and the goal for 2028 is to reach 31 aircraft of this model.”
Dina presented many more financial details, and ended her speech by mentioning the many international awards won by El Al this year. Especially APEX’s 5-star award, which only 5 airlines in the world win every year. “We have hard work to maintain the great achievement, and to win this award next year as well.”
The CFO, Yaacov Shahar, presented the report, saying that the total revenue in this quarter amounted to 630 million dollars compared to 516 in the corresponding quarter last year. Profits before tax reached 59 million, compared to losses of 17 million dollars in the corresponding period last year. According to him, this is the result of demand trends and maintaining operational efficiency above and beyond what was expected following the corona virus. “The results of the report show once again that we are on the trend of stabilizing revenues and making progress in implementing the company’s strategic and business plan. We are working with all our energy in order to realize our financial goals and are happy to receive the trust of the capital market in the company’s activities.”
The head of the budget department at El Al, Gil Feldman, presented the 4 goals of his department: 1- Maintaining revenues and returning to profitability. 2- Creating a regular cash flow. 3. Strengthening the hall for equipment needs. 4. Maintaining the efficiency we created during the Corona period. According to his words, El Al’s financial forecast is to pass the revenue threshold of 3 billion dollars in 2026, and to reach 3.5 billion dollars in 2028. A figure that reflects an increase of 160% compared to 2019.
Blessed is the believer, and good luck to them.
