El Al profit doubled in Q2

David Maimon

El Al CEO: Revenue and profitability rose despite the challenge of competition and lower fares.

El Al Israel Airlines Ltd. (TASE: ELAL) has reported its results for the second quarter and first half of 2016. The company's operating revenue rose slightly, while quarterly profits doubled., El Al announced an $18.3 million dividend.

In the second quarter, El Al reported $537 million revenue, compared with $511 million in the corresponding quarter last year - a 5% rise. Net profit jumped 102% to $35 million, compared with $17 million in the corresponding quarter in 2015.

The results were positively affected by the Passover holiday, and the resulting increase in flights, which took place in the second quarter this year, as well as the significant decrease in jet fuel prices. On the other hand, the revenue was negatively affected by the ongoing reduction in flight prices due to decreasing oil prices and increasing competition.

The company reported a 15% rise in the number of passengers from last year, including a 10% rise in Ben Gurion Airport, as well as an increase in its market share of passengers passing through Ben Gurion Airport to 34.2%, from 32.7% in the corresponding quarter last year. Occupancy rate in the second quarter increased to 82.3%, compared with 81.1% in 2015.

El Al's operating profit totaled $51 million, compared with $27 million in the corresponding quarter, an 87% jump. EBITDA rose to $96 million, compared with $64 million in 2015.

The cash flow from routine operation in the second quarter of 2016 totaled $107 million, compared with $79 million in the corresponding quarter last year.

El Al CEO David Maimon said, "We reported an increase in revenue and profitability, despite the challenge of competition and the decrease in ticket prices."

Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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David Maimon
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