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El Al Israel Airlines Announced Today its Financial Results for the Second Quarter and the First Half of 2017

August 21, 2017 Financial No Comments Email Email

El Al Israel Airlines (TASE: ELAL) announced today that revenues in the second quarter of 2017 amounted to approx. USD 541 million, compared to approx. USD 537 million in the second quarter of the previous year, an increase of about 0.6%;

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Gross profit in the second quarter of 2017 amounted to approx. USD 107 million, compared to approx. USD 124 million in the second quarter of the previous year, a decline of about 13%;

Operating profit in the second quarter of 2017 amounted to approx. USD 27 million, compared to approx. USD 51 millionin the second quarter of the previous year, a decline of about 47%;

Net profit in the second quarter of 2017 amounted to approx. USD 16.4 million, compared to a profit of approx. USD 35 million in the second quarter of 2016, a decline of about 53%;

The number of flight segments in the second quarter of 2017 increased by approx. 2.4% compared to the second quarter of the previous year; the Company’s market share of passenger traffic at Ben Gurion Airport in the second quarter of the year was approx. 29.5%, compared to 34.2% in the second quarter of 2016;

Passenger Load Factor in the second quarter of 2017 stood at approx. 84.3%, compared to 83.1% in the second quarter of the previous year; the Company’s ASK (Available Seat Kilometer) declined by about 3% and RPK (Revenue Passenger Kilometer) decreased by about 1%;

Average total income per RPK (Yield) increased by about 0.7%;

Cash flow from operating activities in the second quarter of 2017 amounted to approx. USD 101 million compared to approx. USD 107 million in the second quarter of last year;

EBITDA amounted to approx. USD 70 million, compared to approx. USD 96 million in the second quarter of last year;

The Company’s cash and deposits balances as of June 30, 2017 totaled approx. USD 276 million;

The Company’s equity as of June 30, 2017 totaled approx. USD 247 million;

The Company’s revenues in the first six months of 2017 amounted to approx. USD 959 million, compared to approx. USD 934 million in the first six months of the previous year, indicating a growth of about 2.6%;

Gross profit in the first six months of the year amounted to approx. USD 148 million, compared to approx. USD 158 million in the first six months of the previous year, reflecting a decline of about 6.4%;

Net Loss in the first six months of 2017 amounted to approx. USD 13.6 million, compared to a net profit of approx. USD 13.6 million in the first six months of 2016;

David Maimon, EL AL’s CEO:

“In the second quarter of 2017, EL AL had to cope with the huge growth in competition at Ben Gurion Airport. Notwithstanding, revenues increased due to an increase in passenger segments. Load factor increased, cash flow is strong and the Company maintain its financial strength.

We are delighted to inform that the first Dreamliner, a Boeing 787-9 aircraft, will arrive this month and begin operating in the next few weeks, this will lead the Company to a new era. This plane is the first out of 16 to reach by the end of 2020.

We submitted a request to the Antitrust Commissioner to approve the acquisition, through its subsidiary Sun d’Or, of Israir Aviation and Tourism from I.D.B Tourism. The transaction is an important element in the implementation of EL AL’s long-term strategy to enhance and diversify the basket of services offered by the Company, allowing it to increase the entire Group revenues and accelerate the Company’s growth while increasing its volume of operations.

The Fly Card credit card continues to serve as a major growth engine, currently with about 238 thousand holders.

The Company will launch in November a direct route to Miami, which is an important strategic step in the continued expansion of EL AL’s route network in North America.

We are committed to continue to provide our customers with services and products at the highest level and focus on our continued efforts to deal with the challenging market conditions”.

Dganit Palti, El Al’s CFO, stated:

“Also this quarter, the Company recorded an increase in revenues, despite the challenging business environment characterized by a significant increase in competition at Ben Gurion Airport. Alongside this , an increase in jet fuel expenses was recorded due to the increase in oil price, and an increase in payroll expenses, mainly due to the new wage agreements and the strengthening of the shekel against the dollar

In the second quarter, the Company continued to generate high cash flows from operations of over USD 100 million and present high liquidity expressed by cash balances of approx. USD 276 million along with equity of approx. USD 247 million.

Furthermore, the Company paid during the quarter advances totaling approx. USD 24 million for the Dreamliner aircrafts it has acquired, which are expected to join the Company’s fleet during 2018.

The Company’s cash reserves and its high cash flows from operating activities constitute a solid basis for promoting its investments as part of the Company’s long-term strategic plan.”

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