EL AL Israel Airlines Ltd. Announced Today Its Financial Results for the Second Quarter of 2019 and the First Half Year 2019

              EL AL's CEO,Gonen Usishkin, announced today as follows: "During the second quarter of 2019, the company recorded a 7% increase in revenues, amounting toUSD 584 million, mainly due to impact of Passover, which fell this year in the second quarter. In addition, the Company recorded an improvement in the key operational indicators, and all this alongside the struggle with the challenges and high competition at Ben Gurion Airport. The Acquisition...

 

 

 

 

 

 

EL AL's CEO, Gonen Usishkin, announced today as follows:

"During the second quarter of 2019, the company recorded a 7% increase in revenues, amounting to USD 584 million, mainly due to impact of Passover, which fell this year in the second quarter. In addition, the Company recorded an improvement in the key operational indicators, and all this alongside the struggle with the challenges and high competition at Ben Gurion Airport.

The Acquisition Program progresses as planned. Thus far, the Company has received 11 new 787-9 and we expect to receive three more by the end of the year, and the last two in the first quarter of 2020, this will complete the Acquisition Program.

We witness a constant growth in our customers' satisfaction from these airplanes. We have removed, as planned, the 676 aircraft fleet and are currently gradually removing the 747 airplanes. At the same time, we have started implementing a program to improve aircraft interiors of existing fleets, which also progresses as scheduled. Accordingly, out aircraft fleet becomes younger and our product is better.

As part of our growth strategy, we enhance existing activities and expand our network of routes by launching routes to new destinations and adding flights to existing ones. In the last quarter, we launched the routes to San Francisco, Las Vegas and Manchester, in addition to the route to Niece, which was launched in the first quarter of 2019. Further to the announcement of launching the routes to Tokyo and Chicago, which are expected to operate from March 2020, the Company announces today the launch of routes to Dublin and Dusseldorf, which are expected to operate from summer 2020.

During the second quarter of 2019, we commenced, as planned, to operate flights to all the Company's destinations in the East and South Africa under a new model, which provides the customer with the possibility of choosing between three different types of flight product packages – Light, Classic and Flex – each customer according to his needs.

I would like to thank our customers for the trust in El Al. We are doing everything possible so that customers will choose us over and over again. Special appreciation is extended to EL AL employees, who share this special effort."

Dganit Palti, EL AL's CFO, announced today as follows:

"The increase in the Company's revenues and the decrease in its expenses improved the profit before tax for the reported quarter by approximately USD 23 million, compared to the second quarter of 2018. All these, despite the implementation of IFRS 16 (Leases), which reduced the improvement in the Company's results for the quarter by about USD 5 million.  The Company recorded a decrease of approximately USD 8.5 million in fuel expenses for the reported quarter due to the drop in jet fuel prices and a decline in the quantity consumed, despite growth in operations as a result of operating the new 787-9 'Dreamliner' aircraft, which are more efficient in fuel consumption.

In the second quarter of 2019, the Company received financing of approximately USD 145 million from Japanese financial institutions, for the purpose of acquiring another 787-9 Dreamliner, which was received by the Company in June. So far, 11 new 787-9 Dreamliners have joined the Company's fleet, of which 4 are owned and 7 are leased".

 

Financial Results:

 

For the Second Quarter, April-June 2019:

 

 

 

 

 

 

For the First Half, January – June 2019:

The Company's revenues amounted to approximately USD 1,012 million increased by approximately USD 5.3 million in the reported period, reflecting an increase of about 0.5% compared to the Company's revenues in the first half of 2018. Revenues from flying passengers increased by approximately USD 15 million, indicating a growth of about 1.7%. This growth was attributable to the increase in passenger revenue per kilometer (RPK) flown by the Company and the increase in yield per passenger-kilometer. The Company's revenues were adversely affected by the negative impact of exchange rates of currencies used by the Company in some of its sales transactions, in relation to the dollar. Cargo revenue in the first half of 2019 decreased by $ 9.2 million (about 11.8%) compared to cargo revenue in the same period last year, primarily as a result of the reduction in volume.

 

 

 

 

 

 

 

 

 

 

 

Operating Results:

For the Second Quarter, April-June 2019:

 

For the First Half, January – June 2019:

 

The contents of this notice do not replace reading the Company's financial statements for 2018, the financial statements for the Second quarter of 2019 and immediate reports published from time to time by the Company.

Details of Conference Call

A conference call took place on Wednesday, August 28, 2019, at 12:30 IL. A recording of the conference call will be available to all interested parties from August 28, 2019, at 14:00 IL, until September 4, 2019, via phone number +972-3-9255943, as well as on the Company's Investor Relations website at: https://ir.elal.com.    

For further details:

 

EL AL Israel Airlines Ltd.

+972-3-9717439

[email protected] 

Investor and Public Relations.

+972-3-7538828

[email protected]