Corona impact: El Al lost $ 105 million in the second quarter of 2020 and stopped flying

El Al lost $ 105 million in the second quarter of 2020, compared with a profit of about $ 100,000 in the same period last year, according to the financial statements published by the company tonight (Wednesday). El Al's losses in the first half of 2020 amounted to approximately $ 244 million. The reports also show that the company has a negative cash flow from operating activities of approximately $ 23 million, compared with a positive cash flow of approximately $ 110 million in the corresponding quarter last year. It should be noted that the results for the quarter are affected by the caravan crisis, as a result of which the company stopped regular flights and expelled most of its employees to 6,500.
At the same time, El Al is preparing to issue shares by the end of the month in the amount of approximately $ 150 million, in accordance with the state's aid scheme, which should also include a state guarantee for raising debt in the amount of approximately $ 250 million. So far, three investors have shown interest in buying the shares - Eli Rosenberg, an ultra-Orthodox investor born in the United States with Israeli citizenship, and Meir Gurevich, an Israeli active in real estate in the United Kingdom. David Sapir, an active Israeli citizen in Russia, is willing to settle for a partnership with the controlling shareholders - the Mozes Borowitz family. Tomorrow, David Sapir will meet with the El Al board of directors, headed by the interim chairman of the day, Yehuda Levy, who has until now served as deputy chairman.
The reports also show that the company's revenues - which shut down all its commercial flights this quarter - fell by 74% in the quarter to about $ 152 million, compared with about $ 584 million in the second quarter last year. The company's revenues from cargo operations increased in the second quarter of the year by approximately $ 101 million compared to the corresponding quarter last year. Along with the decrease in the company's revenues, most of whose employees in the IDF, its operating expenses were reduced by about 66%, to about $ 161 million and a decrease in jet fuel expenses in the amount of about $ 122.1 million. As surpluses in former employees' pension funds, the move was made in agreement with the state and the Histadrut.
El Al CEO Gonen Oshkin: "We are in the midst of an unprecedented crisis, one that has never been seen before in all the years of the commercial aviation's existence. The company's activity depends on the ability of the countries to overcome the virus, restore the trust and confidence of the customers to fly and the provision of state aid. We all hope that these will come true soon. "