Israir reports strong profit growth


All measures of the airline's business improved in 2016, and it added revenue from incoming tourism.

With acquisition by El Al Israel Airlines Ltd. (TASE: ELAL) looming, Israir Airlines and Tourism Ltd. owned by Discount Investment, has reported strong results, with growth in all measures of its business.

The company finished 2016 with a NIS 45 million net profit, 87% more than in 2015. Excluding one-time revenue and expenses, the company's net profit rose from NIS 17 million in 2015 to NIS 35 million in 2016.

Israir's sales turnover reached NIS 1.36 billion in 2015, compared with NIS 951 million in 2015. The company's 2016 results also included revenue from incoming tourism through Diesenhaus Unitours Incoming Tourism, which was merged into Israir this year. This activity contributed NIS 200 million in revenue and NIS 4 million in net profit to Israir.

Israir's fourth quarter net profit was NIS 1 million, compared with a NIS 9 million loss in the fourth quarter of the preceding year.

Israir CEO Uri Sirkis said that his company was continuing implementation of its turnaround plan, based on restraint in operating expenses, growth in passenger traffic, and higher gross profit margins resulting from Israir's sales strategy of overseas vacation packages and services. "This is a peak year. In addition to doubling our net profit from current activities, the company is significantly improving its market share, number of flights, number of passengers, and sales volume of overseas overnights," Sirkis said.

Published by Globes [online], Israel Business News - - on March 23, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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