After several years of losses due to the Covid pandemic, which hit operations and led to organizational restructuring and new ownership, El Al Israel Airlines Ltd. (TASE:ELAL) returned to profit in 2022. Revenue rose 132% last year and the airline ended 2022 with a net profit of $109 million, after combined losses of nearly $1 billion in 2020 and 2021. Fourth quarter profit in 2022 was the biggest fourth quarter profit since 2015.
El Al reported $1.98 billion in 2022, up 132% from 2021. Operating profit was $112.8 billion compared with an operating loss of $320.4 million in 2021 and a very slight operating profit of $2.9 million in 2019.
In the fourth quarter of 2022, revenue amounted to $560.7 million, up 112% from the fourth quarter of 2021. Operating profit in the fourth quarter of 2022 was $46 million compared with an operating loss of $77.4 million in the fourth quarter of 2021. Net profit in the fourth quarter was $8.5 million compared with a net loss of $77.4 million in the fourth quarter of 2021 - as mentioned the biggest fourth quarter profit since 2015.
Sees annual revenue of $3.5 billion within five years
The company presented a five year revenue target of $3.5 billion by 2028 - in other words 76% higher than in 2022. El Al forecasts 7.5 million passengers in 2028 compared with 4.2 million in 2022.
El Al's share price has recovered since its low-point during the Covid pandemic and is up 4.6% over the past year but has still fallen 60% over the past five years. The carrier's current market cap was NIS 703 million, at the opening of trading this morning.
Last week, after intense diplomatic efforts, Oman agreed to open its airspace to Israeli airlines, which has significantly shortened flight times to Asia, and made El Al more competitive on routes to Thailand, India and elsewhere.
El Al CEO Dina Ben Tal Ganancia said, "Opening the fast route to flights above Saudi Arabia and Oman is another part of the Abraham Accords, which creates for us significant opportunities and growth potential."
Published by Globes, Israel business news - en.globes.co.il - on March 2, 2023.
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