2024-02-29 07:27:00
Despite the war and the drop in demand – El Al reported its results for the fourth quarter of 2023 which were even better than the corresponding quarter in 2022 – revenues totaled $678 million, 21% more than the corresponding quarter in which revenues totaled $561 million. The EBITDAR amounted to 161 million dollars (24% of revenues) compared to 102 million dollars (18% of revenues in the corresponding quarter).
CEO Dina Ben Tal Gnansia was chosen as one of Bizportal’s people of the year, and the company’s reports are further evidence that the choice was correct. Gannasia She came to the Israel Investment Conference to receive the award and talk about the company.
So despite the war – how did El Al present such results?
The company attributed the increase in profits to a number of factors: an increase in activity and the offered capacity (ASK), the adjustment of the target mix, which includes a focus on the requested targets, a decrease in the price of fuel that saved the company about 17 million dollars, a significant increase in the rate of cargo flying to the point of doubling the income from the corresponding quarter last year, and maintaining the efficiency from the period The corona virus which means increasing activity while reducing expenses.
In addition, the company stated that, contrary to estimates, the company experienced an increase in demand: “In the shadow of the war, despite the decrease in general demand for flights and the reduction of activity in Israel, the company experienced an increase in demand for its flights, in a manner that characterizes the summer season, among other things due to Cessation of the activities of most foreign companiesand also thanks to El Al’s ability to make necessary adjustments in order to cater to thousands of passengers,” the company said.
Pay attention to the underlined sentence – El Al remained among the only airlines in Israel, at the low point only 6 airlines operated in Israel, and El Al was the largest among them. In addition, probably one of the most significant factors in El Al’s good results is the routes to the USA.
We wrote here in real time about El Al’s price increases. The price increases on all of El Al’s routes grabbed headlines almost everywhere at the beginning of the war, but we emphasized the routes to the USA, which even before the war were already the most profitable routes, and this is not what we are saying, the American companies said so – in their third quarter reports, she said United UNITED AIRLINES -0.31% Close: 0 Open: 44.43 High: 45.13 Low: 44.4 Turnover:– page quote news graphs company profile recommendations additional articles on the subject: that it expects earnings per share of $1.8 in the last quarter if flights to Israel return in November and 1.5 dollar if they do not return at all this year, and this is compared to Wall Street’s expectations (for routine operations) of $2.09 per share. That is, the lines to Israel affect a quarter of the profits – this clearly illustrates how profitable these lines are.
And El Al also enjoys these profits, and with the start of the war and the cancellation of flights by the foreign companies, it raised the prices, between 30%-50%, and it is likely that this was a significant contributor to the company’s profit line in the quarter.
The financial data for 2023
The company’s revenues in 2023 amounted to approximately $2.5 billion, an increase of 26% compared to revenues in 2022, which amounted to approximately $2 billion. The pre-tax profit in 2023 amounted to about 125 million dollars, compared to a pre-tax loss of about 14 million dollars in 2022.
The company’s EBITDAR in 2023 amounted to about 556 million dollars (about 22% of total revenues), and this compared to EBITDAR of about 349 million dollars (about 18% of total revenues) in 2022.
Net financing expenses in 2023 amounted to approximately $142 million, compared to financing expenses of approximately $127 million in 2022. The company’s cash flow from current operations amounted to approximately $455.5 million compared to a flow of approximately $312.9 million last year. The increase in the amount of about 142.6 million dollars in the current activity is mainly due to the improvement in the business result.
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#war #excellent #reports