there is
EL AL
-0.56%
EL AL
339.8
-0.56%
Base:341.7
opening:351
High:351
low:338
change:1,489,887
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, And there is Israir. True, Israir is much smaller than El Al, but also more efficient and leaner, emphasizing that its committee can do harm to it – certainly not with the same intensity of the celebration at El Al for years, which greatly hurt the company and prevented it from rising and succeeding.
Israir, which as revealed in BizPortal – is expected to start trading in about two weeks at a value of NIS 225-250 million – records an improvement in revenue to $ 56.5 million, compared to $ 44.9 million in the previous quarter and $ 11.5 million in the corresponding quarter last year. In addition, revenues from related flight products, including seating, luggage, and more, jumped to about 7% of the company’s total revenues compared to about 3% in 2019.
What is more important is that she manages to make a gross profit on the tickets she sells, (the cost of the ticket is lower than the income on it). Say, obviously, this is how every company should be run. True, this can be bypassed-but not unless you’re a techie who knows what he’s doing. El Al has been improving over the past year but it will need a few quarters, and possibly a few years, to become profitable over time. So Israir does manage to generate a gross profit and in the first quarter of 2022 it recorded a gross profit of $ 7 million, compared to a gross loss of $ 178,000 in the previous quarter and compared to a gross loss of 1.5 million in the corresponding quarter.
Israir returns to a net profit, still small but still a profit
The company recorded a positive EBITDA of $ 2 million, compared to a negative EBITDA of $ 2.2 million last year and $ 900,000 in 2019. In the operating line, Israir still records a zero operating loss of $ 56,000, but this is an improvement compared to an operating loss of $ 9.66 million in the quarter Previous and compared to an operating loss of $ 4.4 million in the corresponding quarter.
Bottom line – Israir manages to return to a profit of $ 1.77 million in the current quarter, compared to a net loss of $ 13.7 million in the previous quarter and compared to a net loss of $ 4.5 million in the corresponding quarter.
More in the data:
Although the company received state-guaranteed loans amounting to more than NIS 170 million, the company’s financing expenses amounted to about $ 1 million, compared to $ 900,000 in 2019.
Based on a valuation commissioned by the company, Israir recorded an increase of approximately $ 5 million in the value of the aircraft.
At the end of the first quarter, the company employed 327 employees, with a salary of NIS 18 million, compared with 490 employees in the first quarter of 2019, with a salary of NIS 27 million. The decrease in salary expenses was due to a significant reduction in the manpower situation and a salary cut implemented by management and pilots. The improvement in results led to an improvement in net financial debt, at the end of the first quarter, which stood at $ 61 million compared to $ 75 million at the height of the corona crisis. The company also repaid debts of about $ 6 million, to engine suppliers and aircraft charterers.
At the end of the first quarter, the company’s market share in international flights at Ben Gurion Airport was 4%, compared with 1.8% of the company’s market share in the corresponding quarter in 2019. In the domestic route, the company’s market share was 39% compared to 27% in the first quarter Of the year 2019.
Israir estimates that the trend of improvement will continue, since in fact two of the three months of the next quarter have already passed and the company already knows what two-thirds of this quarter looks like.
The Israir management said against the background of the reports: “Made workflow changes along the corona, implementing state-of-the-art information systems and unprecedented efficiency.”
Control of Israir (75%) passed last year to the BGI group (51% share) of Rami Levy and Haim Shalom, with Levy privately holding an additional 24%. The two acquired control of the company for NIS 162 million as part of the IDB Group’s receivership.
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The value of Israel The value of Israir should be at least 400 million
Haim
26/05/2022
20:26
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0This is a profitable company, compared to El Al, which is still deep in the mud
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