On video: Passenger Hall, Netavg / Yoav Itiel
Despite the storm of refusing to add flights on the Sabbath at the beginning of the war and the stoppage of tourism, the War of Iron Swords led to an increase in revenues and profits, especially in the last quarter of 2023, which were a record in revenues and profits.
The company, which is under the control of businessman Kenny Ronenberg, but still carries the Israeli flag on the tail of its planes, recorded revenues of $678 million during the war compared to $561 million (an increase of 21%) and a profit of $40 million in the war quarter compared to $8 million in the corresponding quarter last year. (a jump of 370%).
For most of the period, El Al enjoyed exclusivity on most of its routes, especially the long and profitable ones, to North America and the East, after the foreign companies stopped flying to Israel because of the war.
Even now, when they start to return, the frequency of their flights is much lower.
United Airlines, for example, starts with a daily flight to New York, while El Chal operates 6 flights, which are almost completely full.
The company also froze flights to Istanbul, Sharm and Morocco due to lack of demand and security, and added more profitable flights to the USA, Frankfurt, London and Paris. Therefore, El Al estimates that the first quarter of 2024 will also show good results, with an increase in the number of flights, occupancy and revenue per passenger.
El Al plane.
The company enjoyed most of the period exclusivity on most of its lines, especially the long and profitable ones, to North America and the East/image processing, Reuters
The jump in profit was also helped by a large increase in cargo flying activity, also here due to the suspension of flights by foreign companies, to $76 million in the last quarter, almost twice as much as in the last quarter of 2022. El Al advanced revenue from the service of the Boeing 737 cargo plane it purchased, but most of the cargo Passenger flights were carried in the belly.
A drop in fuel prices also helped Al save 17 million dollars.
In total, El Al recorded revenues of $2.5 billion in 2023, an increase of 26%, and a net profit of $125 million compared to a loss of $14 million in 2022.
Although El Al presented good results in the three quarters before the war, the last quarter was its best.
In response to the criticism of the high ticket prices, El Al presents data indicating a large increase in the purchase of last-minute, more expensive tickets, compared to tickets that are purchased at a later time and are cheaper.
"The ticket price list has not changed, the price is affected by how many seats are left in each class and it depends on when you book. Those who purchase six months in advance receive a lower price. Those who purchase at the last minute because their flight with a foreign company was canceled and we are the only company flying, experience a more expensive price," he said Dina Gennansieh Ben Tal, CEO of El Al.
Against the backdrop of the forecast for an increase in demand, the company planned to increase its aircraft fleet. In May, it will receive another new 787 that it purchased, the 17th aircraft of the model it has until 2025, two more on lease. By the end of next year, it will complete renewal of 3 777 aircraft that are currently grounded. By 2030, El Al plans to purchase 3 more 787 aircraft and launch a plan to replace its 737 aircraft fleet, increasing it from 24 to 30-31 aircraft. Its total aircraft fleet should increase from 46 today to almost 60 in 2030.
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Al Al
War of Iron Swords
Gaza war