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EL AL Israel Airlines presents financial results for second quarter and first half of 2016

Aug 17, 2016

LOD, Israel - The Company's operating revenues in the second quarter of 2016 amounted to approx. USD 537 million, compared to approx. USD 511 million in the second quarter of the previous year, an increase of 5%.

Gross profit for the second quarter of 2016 amounted to approx. USD 124 million, compared to approx. USD 103 million in the second quarter of the previous year, an increase of 21%;

Operating profit amounted to approx. USD 51 million, compared to approx. USD 27 million in the second quarter of last year, an increase of 87%;

Profit before taxes on income in the second quarter of 2016 totaled approx. USD 47 million, compared to a profit of approx. USD 24 million in the second quarter of last year, an increase of 99%;

Net profit in the second quarter of 2016 totaled approx. USD 35 million, compared to net profit of approx. USD 17 million in the second quarter of last year, an increase of 102%.

The number of passenger segments in the second quarter of 2016 increased by approx. 15% compared to last year; the Company's market share of passenger traffic at Ben-Gurion Airport increased to approx. 34.2%, compared to approx. 32.7% in the second quarter of the previous year.

Load Factor in the second quarter stood at approx. 82.3%, compared to 81.1% in the second quarter of last year; the Company's seat availability increased by about 10% and RPK increased by 11%.

Cash flow from operating activities for the second quarter of 2016 amounted to approx. USD 107 million, compared to approx. USD 79 million in the second quarter of the previous year.

The EBITDA for the second quarter totaled approx. USD 96 million, compared to approx. USD 67 million in the second quarter of last year, an increase of 43%.

The Company's cash and deposits balances as of June 30, 2016 totaled approx. USD 264 million.

El Al's CEO, David Maimon:

"I am pleased to present an improvement in all operational and financial parameters of the Company, including an increase of about 15% in passenger segments, a growth of about 10% in the volumes of the Company's operations, a market share increase to 34.2%, as well as growth in revenues and profitability despite the challenging competition and the drop in flight ticket prices.

We are happy to announce that we have decided to lease another 787-9 Boeing aircraft, thus, in total, the Company will receive 16 new Dreamliners into its aircraft fleet, commencing a year from now.

The FLY CARD credit card continues to serve as a major growth engine, currently with about 170 thousand holders. Recently we signed an agreement with Electra Consumer Products Group, providing unique benefits and enhancing the value for the FLY CARD holders.

We continue to maintain our position in the Israeli aviation industry as a leading and innovative company that offers its customers utmost comfort and technological innovation.

We are delighted to share the Company's success and improvement of its financial results with our shareholders, and today we announced an additional dividend distribution".

Dganit Palti, El Al's CFO, stated:

"We completed the first half of 2016 and the second quarter of the year with a significant improvement in the financial results, mainly due to the growth in operations. The Company's fuel expenses decreased by about 21%, despite a 10% growth in operations.

The Company's cash flows from operating activities in the quarter increased to approx. USD 107 million, thus increasing the Company's cash and deposits balances to a level of USD 264 million.

The financial strength and business condition of the Company allow us to distribute a dividend and implement the Company's long-term strategy to expand its operations".

EL AL Israel Airlines presents financial results for second quarter and first half of 2016



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