EL AL reports financial results for the 2nd Quarter of 2024: Revenues amounted to $839m.

On Thursday, August 15, 2024, EL AL reported its financial results for the second quarter of 2024. EL AL continues to operate under a state of emergency in the grip of the Iron Swords War along with the plethora of threats and uncertainty. The cancellation of flights by some of the foreign airlines that fly into and out of Israel requires EL AL to continue to keep Israel’s skyway open. To achieve this, EL AL has leaned in to respond to the needs of the public and the thousands of Israelis whose original flights were canceled and found themselves with no way to return home.

Among other things, EL AL continues to allocate significant resources to adding new flights and increasing the number of seats on existing flights, with a focus on two main assembly points – Athens and Larnaca, which enable connections to hundreds of follow-on destinations. The newly added flights were priced at up to $280 one way. On EL AL’s other flights in the coming weeks with available seats, we have cut prices for August and introduced a flexible cancellation policy that is revised according to the security situation. EL AL’s efforts since the beginning of the month enabled it to add thousands of seats to and from Israel to date.

The demand for flights at Ben Gurion Airport has exceeded the supply of seats that the various airlines were able to provide, EL AL included. However, the second quarter of 2024, like the
first quarter of the year, saw increased demand for EL AL flights, despite the gradual return of the foreign airlines. To respond to the demand to the extent possible, EL AL continued to work
to expand its flight schedule, while adapting the aircraft operation model and diverting them to high-demand destinations. This quarter as well, the load factor on EL AL flights was
exceptional, reaching 92%, a figure which when compared to the second quarter in previous years is considered high, along with 8% available seat kilometers (ASL).

As was the case in the previous quarter, in this quarter as well, we are experiencing continued growth in cargo operations, and an upswing in the demand for cargo flights. EL AL is continuing to expand the amount of cargo it flies in the belly of its passenger flights and in special cargo planes.

According to EL AL CEO Dina Ben Tal Ganancia, “Since the outbreak of the war over 10 months ago, we have been working in a complex market and under conditions of uncertainty. Therefore, we must manage our business tightly and effectively. Recent times have shown us just how fragile the concept of ‘open skies’ really is when it comes to Israel. The cancellations of foreign airlines mandate that we do everything possible to provide a suitable response for the entire Israeli public. This is an opportunity for me to once again thank the EL AL team who are working day and night to ensure the continuity of Israeli aviation while maintaining security and safety.”

EL AL CFO Yankele (Yaakov) Shachar, said, “In the second quarter (April 2024), EL AL raised capital by issuing a package including stock and option warrants for a total of NIS 511 million (approximately $140 million). EL AL’s accrued cash balance, due among other things to the issue, enables us to implement the procurement plan, with EL AL in the best financial position since the COVID-19 period and this will fund the plan. Thanks to the capital that was raised and the streamlining plan, EL AL now has positive capital for the first time since December 2019. We continue to act to implement the procurement plan and estimate that that in the year procurement is completed according to the strategic plan, EL AL’s revenues will grow by approximately $1 billion relative to revenues in 2023. The effects of the war on the second quarter are evident, and we continue to see significant growth in revenues compared to the first quarter, which is attributable to growth in the load factor.”

Dina Ben Tal Ganancia says, “In the second quarter, Israelis were seeking aviation certainty, and the demand for EL AL flights continued, despite the gradual return of the foreign airlines and prior to the current cancellations by some of the foreign airlines that operated out of Ben Gurion Airport. Throughout the quarter, we worked and continue to work diligently to expand our flight offerings to the extent possible alongside making commercial and operational adjustments. We have increased the frequency of flights to the core destinations according to demand. We continue to strengthen our frequent flyer program which has close to 3.1 million members and are working to expand partnerships with the loyalty programs of the various airlines, including KLM, Delta Airlines, Air France, Virgin Atlantic and more.

We are continuing to act to implement the strategic program we announced, which will raise the bar for EL AL’s service standard. Yesterday, we signed an agreement with aircraft manufacturer Boeing for the purchase of dozens of aircraft to replace our fleet of narrow-body aircraft, making it the most strategic and largest procurement agreement in EL AL’s history. The new aircraft will enable us to upgrade significantly as we build a modern, technology-forward and advanced fleet, that will offer customers an advanced and innovative service experience, while prioritizing environmental sustainability in line with current global ESG standards. The deal is an important milestone for EL AL and joins the Dreamliner agreement we recently signed with Boeing. These transactions will put us among the world’s leading airlines and position EL AL as a leading and strong company that is flexible and innovative among the Israeli companies and Israeli consumers. The deal will also enable us to continue to expand our flight schedule to existing destinations and enlarge our destination map and increase seat capacity.”

The article EL AL reports financial results for the 2nd Quarter of 2024: Revenues amounted to $839m. first appeared in TravelDailyNews International.