El Al Airlines ends a successful and positive financial year and launches a new strategic plan.
The company’s revenues in 2022 amounted to approximately 2 billion dollars; in 2022 EBITDAR of about 348 million dollars; The operating profit in 2022 amounted to approximately 113 million dollars; The net profit in 2022 amounted to about 109 million dollars (in addition to a one-time tax income of about 112 million dollars).
The trend of strengthening financial stability continues – the cash balance at the end of 2022 stands at a record of 283 million dollars.
A successful fourth quarter
The revenues for the quarter amounted to approximately 561 million and for the first time crossed the 2019 revenues (approximately 518 million dollars in 2019). The net profit for the quarter amounted to about 8 million dollars compared to a loss of about 31 million dollars in the fourth quarter of 2019, in addition, this is the only profitable fourth quarter since 2015;
High growth potential: the activity in the fourth quarter is at a production capacity of only 81% compared to the corresponding quarter in 2019.
El Al launches Rising above & Beyond, a new strategic plan for the next 5 years and sets the following goals until 2028: revenue goal of $3.5 billion; annual passenger volume of 7.5 million people; Increasing the revenue scope of the ancillary services and non-aviation activity to 10% of all revenue, such as: tourism, finance, content and media.
Dina Ben-Tal Gnansia, CEO of El Al: “The El Al company is taking off towards an improved financial horizon, we are putting the corona crisis behind us while maintaining efficiency and continuing to conduct ourselves in a careful and calculated manner. The opening of the fast lane for flying over the skies of Saudi Arabia and Oman is another pillar of the Abraham agreements, which creates opportunities and significant growth potential for us. The high demand and the return to life of the aviation and tourism market, together with the regulation of labor relations in the company, the new Dreamliner planes, the attractive destinations and the most convenient flight times, and receiving the five-star service award from APEX, place us at the forefront of the global aviation world.”
Ben-Tal Gnansia added: “Today we launched El Al’s strategic plan for the next five years, Rising Above & beyond, centered on strengthening our core activity, expanding into the world of tourism, and finally leveraging the brand, along with our massive data in favor of profitable activity beyond the core activity. I believe in this strategy that will bring financial stability, and I believe in our excellent human capital, thanks to which we will continue to soar.”
Itzik Eliav, El Al’s outgoing CFO: “In 2022, the operational and financial moves we made in the company over the past two years were reflected, which resulted in us ending the year with a significant net profit and generating cash flow from current operations of $313 million. During the year, we made several moves that strengthened El Al’s financial strength and reduced the company’s exposure to the rise in interest rates in the economy, while creating financial strength that will allow the company to face the challenges of the future.
“These days I finish my role as the company’s CFO with a great sense of satisfaction, and this after we managed the crisis caused to the aviation industry due to the corona epidemic and brought El Al to a place that allows it to continue to grow and become a leading company in the global aviation market,” said Eliav.