Rami Levy (PR photo, Facebook / Israir)
Israir Aviation and Tourism Ltd., a wholly owned subsidiary of Israir Group Ltd., presents the results of the first quarter of 2022. The company registers an improvement in all parameters that make up the production function, both compared to the corresponding quarter last year and compared to the first quarter of 2019. Gross profit was $ 4.7 million and net profit was about $ 1.8 million.
Israir reports that despite the outbreak of the omicron wave, and despite the rise in the price of jet fuel, the company is showing a significant improvement in all indices. The company attributes the results of the report to significant streamlining processes in the last two years, assimilation of technologies and change of working methods.
Revenue turnover was approximately $ 57 million, approximately $ 45 million more than in the corresponding quarter last year, and approximately $ 10 million from the corresponding quarter in 2019. Revenue from flight-related products, including seating, luggage, etc., jumped to approximately 7% of the company’s total revenue. Compared to about 3% in 2019.
Israir recorded a gross profit of $ 4.7 million, compared to a gross loss of about $ 3.4 million in the first quarter of 2021, and a gross profit of $ 1.6 million in the first quarter of 2019. The EBITDA contribution amounted to about $ 2 million, compared to a negative contribution Of $ 2.2 million last year and a contribution of $ 0.9 million in 2019.
Despite the fact that the company took out state-guaranteed loans amounting to more than NIS 170 million, the company’s financing expenses amounted to only $ 1 million, compared to $ 900,000 in 2019. During the quarter, the company increased the hours of Airbus aircraft to a total of 2,100 hours, compared to 1,141 flight hours in the corresponding quarter last year and 1,366 hours in the first quarter of 2019.
This impressive increase was made through the absorption of a fifth Airbus aircraft into Israir’s fleet. Simultaneously with the increase in Airbus operating hours, the company completed a comprehensive renovation – a “12-year renovation” of the two Airbus aircraft it owns, at a cost of about $ 2 million.
This investment, together with the increase in operating hours, led to a re-examination of the value of the aircraft, in light of the decrease in value that the company made at the beginning of the Corona crisis in 2020. The planes.
More in-
Net income for the quarter amounted to $ 1.8 million, compared with a loss of $ 4.5 million in the corresponding quarter last year and a loss of $ 4.7 million in the first quarter of 2019. At the end of the first quarter, the company employed 327 employees, with salaries of NIS 18 million, compared to 490 employees In the first quarter of 2019 at a salary of NIS 27 million. The sharp 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 resulted in a net financial debt, at the end of the first quarter, reaching about $ 61 million, compared to about $ 75 million, financial debt, at the height of the corona crisis. In addition to the decrease in financial debt, the company repaid, at the end of the first quarter, debts of approximately $ 6 million, to engine suppliers and aircraft lessors.
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.
The significant improvement in the Company’s results in the first quarter, including additional expenses related to the Company’s preparations for the Passover activity, which occurred in April, which included the operation of 6 leased aircraft and the absorption of additional employees. The company estimates that the trend of improvement will continue in light of the results of the first quarter of 2022 and its activity in April-May 2022.
The Israir management stated: “Israir has not stopped a queen throughout the Corona crisis. This managerial and operational approach has enabled it to make changes in work processes, implement new information systems and unprecedented efficiency. “To the Civil Aviation Authority and the Airports Authority for accompaniment, trust and support throughout the crisis.”
Comments on the article(0):
Your response has been received and will be published subject to system policies.
Thanks.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment