2023-11-28 12:22:00
Israir Group, an Israeli airline company, recently reported its third quarter results, revealing a 15% increase in revenues to a record of $143.3 million compared to the same quarter the previous year. Despite the increase in revenues, the company’s operating profit decreased by 12% and the net profit by 11%, totaling $13.8 million and $13.5 million respectively.
The decrease in profits is attributed to a drop in demand due to the ongoing war in the region. Israir has stated that a third of the company’s pilots were recruited for war-related activities, and the company’s planes were utilized for flying evacuees from the Gaza Strip. As a result, the company expects to receive support from the government to the tune of NIS 6 million.
In addition to its airline operations, Israir also operated hotels in Greece for the first time during the third quarter. The company is in negotiations with a local banking corporation to refinance its investment in the hotel, which will be used to repay existing investments.
Despite the challenges posed by the war, Israir’s subsidiary, Israir Aviation and Tourism, reported a record backlog of orders, leading the company to forecast that its annual scope of activity will exceed the revenues of 2022.
CEO Uri Sirkis commented on the company’s results, expressing confidence in the company’s ability to navigate through the crisis. He highlighted the company’s successful experience in dealing with past crises and the support received from the regulator and the operating circles in the National Bank of Israel.
The company’s resilience in the face of the ongoing war and its strategic decisions to adapt its operations reflect its commitment to maintaining business continuity and financial stability.
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