El Al’s revenue in the second quarter of 2024 came to about $839 million, a growth of about 33% compared to about $630 million in the corresponding quarter last year. Part of the increase is due to an increase of about 29 million dollars in cargo activity and the balance from passenger activity. The net profit in the quarter amounted to about 147 million dollars, a growth of 2.5 times compared to about 59 million dollars in the corresponding quarter.
The increase is due to an increase in the provision of seats per weighted km (ASK), an increase in revenue per seat weighted km (RASK) and an increase in revenue from cargo.
The supply of seats weighted per kilometer (ASK) increased by approximately 8% compared to the corresponding quarter with the continued construction of production capacity after the exit from the Corona crisis and the introduction of wet leased aircraft for activity in the service of the company. .
The EBITDAR (flow operating profit) in the second quarter of 2024 came to about 281 million dollars, a growth of about 72% compared to about 163 million dollars in the corresponding quarter.
Net financing costs in the quarter totaled approximately $23 million, compared to approximately $31 million in the corresponding quarter. The decrease is largely due to an increase in interest income from investments against the background of a significant increase in the group’s liquidity balance.
The company’s cash flow from current operations came to about $391 million in the quarter compared to about $119 million in the corresponding quarter, an increase of 3.3 times. The increase is due to an increase in profit and an improvement in the company’s working capital, which is largely influenced by advance sales of airline tickets for the demand seasons.
The company’s shareholders’ equity as of June 30, 2024 was approximately $201 million compared to an equity deficit of approximately $209 million as of December 31, 2023. The increase in capital and the transfer to positive equity derived from net profit. was registered in the first half of the year, a capital increase in the amount of about 140 million dollars and a warrant exercise in the amount of about 39 million dollars.
Total financial debt as of June 30, 2024 amounted to approximately 1,700 million dollars. Net financial debt as of June 30, 2024 amounted to approximately 611 million dollars.
Following an increase in demand for cargo flights in this quarter, cargo revenue in the quarter reached approximately $57 million, an increase of approximately $29 million compared to the corresponding quarter last year. last year.
In the second quarter of 2024, there was a greater demand for El Al flights, despite the gradual return of foreign airlines. To respond to the demand, El Al continued to work to extend the flight schedule, while at the same time changing the aircraft operating model and sending them to the requested destinations. The load factor on El Al flights was exceptional and stood at around 92%. This is accompanied by an increase of about 8% in the supply of available seats (ASK).
El Al is still operating in a critical situation under the shadow of a war of iron swords alongside the multitude of threats and uncertainties. The cancellation of flights by some of the foreign airlines flying to and from Israel requires the company to continue to keep Israel’s skies open. For this reason, El Al was used to respond to the needs of the public and the thousands of Israelis whose original flight was canceled and they had no way to return home. Among other things, the company allocates a lot of resources to adding new flights and increasing the number of seats on existing flights, with an emphasis on two main collection areas – Athens and Larnaca, which allows connections to hundreds of onward destinations. The new flights were sold at a price of up to $280 one way, and on the company’s other flights in the coming weeks where individual seats are still available, we reduced the price in August, together to implement a lenient cancellation policy which will be updated according to the situation. All the efforts he made since the beginning of the month have allowed the company to send thousands of seats from and to Israel so far.
As in the previous quarter, in this quarter as well, we are seeing continued growth in cargo activity, and an increase in demand for air cargo. The company continues to increase the area of cargo flight, in the belly of passenger planes and in special cargo planes.
El Al CEO, Dina Ben-Tal Gnansia: “In the second quarter, Israelis were looking for flight certainty and the demand for El Al flights continued despite the gradual return of the foreign airlines and before some of the foreign airlines were cancelled. We worked in Israel From trips to major destinations on demand, we continue to strengthen the frequent flyer club of 3.1 million members, and we are working to expand cooperation there the cooperation with clubs with the various airlines including Air France, Delta Airlines KLM, Virgin Atlantic and more.
We continue to work to implement the strategic plan that we have published which will put El Al at a higher and higher level of service quality. Last night we signed with aircraft manufacturer Boeing to purchase dozens of aircraft to replace our lean fleet, which is the largest strategic equipment agreement in the company’s history to date. The new planes will allow us to carry out a major upgrade as part of establishing a young, technological and advanced fleet, which will provide customers with a positive and innovative service experience, while emphasizing the quality of the environment according to global ESG indicators. The agreement is an important milestone for the company, which joins the Dreamliner contract we recently signed with Boeing. These transactions will put us in line with the world’s leading airlines, and will position El Al as a strong leader among Israeli companies and Israeli consumers with the ability to be flexible and innovative. In addition, the transaction will allow us to continue to increase the flight schedule to existing destinations, expand the destination map, and increase the seat supply.”
CFO of El Al, Yankla Shahar: “In the second quarter (April 2024), the company raised capital through the issuance of a portfolio that includes shares and warrants in exchange for approximately 511 million NIS (about $140 million). The balance of the money collected by the company, among other things, as part of the issue, allows us to implement the stocking plan when the company is in the best financial preparation since the Corona period and enables for funding, for the first time since then. December 2019, the capital of the company is positive. in 2023. The impact of the war on the second quarter is evident and we continue to see a significant increase in income, compared to a quarter that is due to an increase in the level of occupancy.”
