Net profit increased to $67 million; Revenues jumped to $626 million, the annual revenue rate is similar to that of 2019
The third quarter of 2022 is the second quarter in a row since the corona restrictions were lifted and there was a recovery in global aviation. The rapid return to the high demand for aviation services led El Al to an increase in sales and an annual revenue rate similar to that of 2019. El Al moved to a net profit for the first time in the third quarter of 2022, and records a high cash flow operating profit compared to the corresponding periods in the pre-Corona era in 2019. The improvement comes against the background of the scope of activity (the company’s production capacity, in ASK terms) of only 72% compared to the scope of activity in the third quarter of 2019, before the corona crisis.
El Al reports an increase in total revenue in the third quarter of 2022 that reached $626 million, completing an eighth consecutive quarter of consistent revenue growth.
At the same time, the company continues to consistently improve the operational indicators, and reports in the third quarter on EBITDAR Positive of 167 million dollars, an increase of more than 150% compared to that in the second quarter of 2022 and compared to EBITDAR of $3.5 million in the corresponding quarter last year. Operating profit (EBIT) in the third quarter of 2022 amounted to $103 million, more than 10 times compared to that in the second quarter of 2022.
In the third quarter of 2022, the company registered For the first time since the outbreak of the Corona crisis net profit, the net profit in the third quarter of 2022 amounts to approximately 67 million dollarsand includes a one-time profit of about 38 million dollars.
The continuous improvement in the operational indices, the streamlining processes the company is going through and careful maintenance of expenses, along with the signing of the new labor agreements, lead to a continued increase in the company’s profitability, despite the high levels in the price of fuel.
El Al reports maintaining a positive cash flow from current operations and stable liquidity as a result of the increase in activity and the closing of the Phoenix deal. The cash flow from current operations reached approximately $56.9 million in the third quarter of 2022. The company maintains a strong capital base, and the company’s cash balance, as of the end of the third quarter of 2022, amounts to approximately $316 million.
Dina Ben-TalCEO of El Al: “We report another quarter of significant improvement in all of our business and financial parameters, thanks to the determined and systematic implementation of the RESTART program; we continue to be careful about our current financial and operational issues in view of global trends. At the same time, we continue Looking to the future and hoping to soon complete the formulation of El Al’s new strategy for the coming years, I would like to thank our loyal customers for choosing El Al, we will continue to strive to improve and excel for you, as well as a special thanks to our dedicated people who move the company forward.
Itzik Eliav, the CFO: “The transition to a significant net profit indicates more than anything the success of the company’s moves in maximizing the momentum in the industry and efficient and tight management of the expenses side; El Al’s financial solidity with the closing of the Phoenix deal along with the early repayment of the loan to the state create the infrastructure for continued business development, growth and strengthening of the company’s competitive position.Abbreviated address for this article: https://www.ias.co.il?p=131302
Source: IAS by www.ias.co.il.
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