airline EL AL Ended the fourth quarter of 2021 with operating income of $ 265 million, reflecting 5% growth compared to the third quarter of the year. According to the company, the volume of activity in the fourth quarter was 46% compared to the 2019 data, compared to a lower activity rate of 38% in the previous quarter.
El Al also reports adjusted operating income (EBITDAR) of $ 8 million – fourth consecutive quarter, compared to only $ 2 million in the third quarter. The company’s net loss in the fourth quarter was $ 110 million, compared to $ 136 million in the third quarter.
Cash flow from operating activities was negative and amounted to $ 11 million. However, in neutralizing past debts, the company posted a positive cash flow of $ 10 million in the fourth quarter.
According to EL AL management, the sky is starting to clear for the company as it enjoys high demand for flights.
The company reported a net loss of about $ 413 million in 2021, after a loss of about $ 530 million in 2020. In the top tier, the airline posted revenue of $ 857 million last year, compared to revenue of $ 623 million in 2020.
Live Business Note
Following the company’s losses and the difficult financial situation it encountered as a result of the global corona crisis, El Al’s accountants attached a “live business” note to its 2021 summary reports.
“As of the date of approval of the financial statements, despite receiving state funding by paying in advance for flight manpower in the aviation security system and receiving additional assistance from the state and the controlling shareholder, since the company’s ability to meet all its financial obligations depends, among other things, on events beyond its full control “The company and which are uncertain and necessary to enable the company to deal with the consequences of the crisis – there are significant doubts about the continued existence of the company as a living business. , The accountants write.
Avigal Sorek, CEO of El Al, stated that “The company’s results in 2021, with an emphasis on the fourth quarter of the year, reflect the continuous improvement in the company’s operations and the continued implementation of the strategic plan. “El Al has recently focused on managing the crisis, and now, with the company’s stabilization, the realization of streamlining processes and the strengthening of financial strength, we are focusing on increasing production capacity and developing growth engines.”