The revenue turnover of Israir Aviation and Tourism – its fully unified, subsidiary – reached an all-time high of $94 million for the first quarter.
Israir Group recorded a sharp increase in demand for its products, both during the quarter and into the summer season. The Group's revenue reached a record $94 million, about $38 million more than the same quarter in 2022 and about $48 million more than the first quarter of 2019 – an increase of approximately 95 percent.
Israir plane, photo: Moshe Shai
In parallel with the sharp jump in revenue, the company recorded an improvement in its occupancy rate, which amounted to about 82 percent, compared with about 74 percent in the corresponding quarter of last year. Quicklizard's AI-based yield management system contributed to an increase of about $23 per passenger in the price of a flight ticket.
The impressive increase in the Group's revenues is mainly explained by an increase in demand, the impact of Omicron in the corresponding quarter of last year, an increase in the supply of seats with the absorption of Israir's sixth Airbus aircraft, and continued accelerated development of subsidiaries in the tourism sector.
The increase in the dollar's exchange rate, combined with a decline in households' disposable income due to the increase in interest rates, does not, for the time being, affect demand for the Group's products. The Tourism Group's wholesale order backlog stood at USD 107 million at the end of the quarter, compared with USD 61 million at the end of the first quarter of 2022 and USD 72 million at the end of the first quarter of 2019.
This strong volume of demand was also reflected at the time of publication of the reports. As of this date, the Group's wholesale order backlog stands at approximately USD 145 million, compared with approximately USD 101 million at the end of May 2022 and only USD 98 million at the end of May 2019.
The Group recorded an improvement of about 100% in gross profitability, which stood at about USD 9.7 million, compared with gross profit of about USD 4.7 million in Q<> <>.
The significant improvement in gross profitability derives from the increase in the average price per passenger and from increased synergy with subsidiary tourism companies, primarily Ski Deal, Geographical Travel Roads, and Terminal 1 – the incoming tourism company. During the current quarter, the Group incorporated for the first time the ski hotel it acquired in cash, through its subsidiary Ski Deal, at a cost of approximately $4 million. The hotel worked at extremely high occupancy rates throughout the ski season.
As detailed in the Company's reports, the volume of free cash in Israir Aviation and Tourism's treasury at the end of the first quarter was about USD 37 million, compared with about USD 34 million at the end of 2022.
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