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El Al Israel Airlines announced financial results for Q3 and first nine months of 2017

El Al Israel Airlines announced financial results for Q3 and first nine months of 2017

El Al Israel Airlines announced today that revenues in the third quarter of 2017 amounted to approx. USD 626 million, compared to approx. USD 644 million in the third quarter of the previous year.

Operating revenues in the third quarter of 2017 amounted to approx. USD 69 million, compared to approx. USD 96 million in the third quarter of the previous year.

Profit before tax in the third quarter of the year amounted to approx. USD 64 million, compared to profit before tax of approx. USD 93 million in the third quarter of the previous year.

Net profit in the third quarter of 2017 amounted to approx. USD 49 million, compared to a profit of approx. USD 69 million in the third quarter of 2016.

EBITDA In the third quarter amounted to approx. USD 109 million, compared to approx. USD 142 million in the third quarter of last year.

EBITDAR In the third quarter amounted to approx. USD 147 million, compared to approx. USD 191 million in the third quarter of last year.

The Company’s cash balances and deposits as of September 30, 2017 totaled approx. USD 289 million.

The number of flight segments in the third quarter of 2017 decreased by approx. 4.4% compared to the third quarter of the previous year; seat availability decreased by approx. 3.6% and RPK decreased by approx. 5.9%.

Average total income per RPK (Yield) in the third quarter increased about 1.4%.

The Company’s market share from passengers traffic at Ben Gurion Airport in the third quarter declined to about 26.5%.

Aircraft load factor in the third quarter of 2017 stood at approx. 85.3%, compared to 87.4% in the third quarter of the previous year.

The Company’s revenues in the first nine months of 2017 amounted to approx. USD 1,585 million, compared to approx. USD 1,578 million in the first nine months of last year.

Operating profit in the first nine months of 2017 amounted to approx. USD 62 million, compared to profit before tax of approx. USD 118 million in the first nine months of last year.

Profit before tax in the first nine months of 2017 amounted to approx. USD 47 million, compared to profit before tax of approx. USD 106 million in the first nine months of last year.

Net profit in the first nine months of 2017 amounted to approx. USD 35 million, compared to a profit of approx. USD 83 million in the first nine months of last year.

David Maimon, El Al’s CEO:

“The Company presented today a net profit of USD 49 million in the third quarter of 2017 as well as cash balances and high equity indicating financial strength and stability.

Operating data for the quarter was affected by the timing of the Jewish Holidays, which reduced the number of operating days compared to the previous quarter of last year, and was further adversely affected by continuous maintenance work on two of the Company’s aircrafts.

The first of sixteen expected Dreamliner aircrafts arrived in August, and the second Dreamliner arrived in October. Both have commenced flights to London and Newark, and two additional Dreamliners are expected to arrive shortly and will fly to the Far East and Newark, where additional frequency will be added. Passengers report high satisfaction, generating a large demand for flights on those aircrafts, which are anticipated to serve as a significant growth engine for EL Al in years to come.

At the same time, we are working on developing additional growth engines and strengthening existing ones. We continue to implement the Company’s business strategy, headed by the acquisition program of the Dreamliners, as well as the continued expansion of our network of routes and installation of Internet in airplanes (currently installed in six 739 aircrafts and commencing the first quarter of 2018, the service will be available in the new Dreamliner aircrafts). The acquisition of Israir, subject to the Commissioner’s approval, strengthening the Frequent Flyer Club’s credit card – “Fly Card”, which currently stands at approximately 255,000 holders, and non-aviation sources of income, all these constitute a strong infrastructure for the Company’s future operations and its ability to cope with competition.

As part of the Company’s regeneration efforts, route network expansion and the Company’s intensification, El Al launched this month a direct route to Miami, to enhance the variety of destinations in the United States, for the benefit of its customers, while maintaining high availability and comfortable flight connectivity to cruise embarkation ports and diverse vacation resorts in Central America and the Caribbean Islands.
I am utterly convinced that El Al will continue to provide its customers with high quality service, maximum comfort, technological innovation and advanced aircrafts, and successfully cope with both market conditions and competition.
I would like to take this opportunity to thank and express my deepest appreciation to El Al employees, on the ground and in the air, in Israel and worldwide, who work with diligence and dedication, allowing us to successfully cope with the challenges facing us.”

Dganit Palti, El Al’s CFO, stated:

“The financial results for this quarter were affected by the intensifying competition and traffic at Ben Gurion Airport, in particular on the part of low-cost airlines, the weakening of the dollar compared to the shekel by about 6%, which affected payroll costs, as well as by an increase in jut fuel costs due to a 19% rise in jet fuel market price. Despite all these, the Company announced a profit before tax of about USD 64 million for the third quarter of 2017, as well as net profit of USD 49 million.

Moreover, we completed the third quarter of 2017 with high cash balances of around USD 290 million, high cash flow from operating activities of approx. USD 65 million, EBITDA standing at approx. USD 109 million and equity totaling USD 305 million. These results indicate the Company’s financial robustness, which allows El Al to safely move forward with the implementation of the Dreamliner aircraft acquisition strategy and meet our current and future liabilities.”

Highlights for the Three and Nine Months Ended on September 30, 2017:

In USD millions
January – September July – September
2017 2016 Change 2017 2016 Change

Operating revenues 1,585 1,578 0% 626 644 (3%)
Operating expenses (1,283) (1,246) 3% (473) (470) 1%
Gross profit 301 332 (9%) 153 173 (12%)
EBITDA 190 248 (24%) 109 142 (23%)
Profit before taxes on income 47 106 (56%) 64 93 (31%)
Profit for the period 35 83 (57%) 49 70 (30%)

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Read the full article: https://eturbonews.com/171198/el-al-israel-airlines-announced-financial-results-q3-first-nine-months-2017

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