El Al. reported revenue of $ 116.8 million in the first quarter of 2021 - Decrease of 64%

The corona continues to hit El Al. It reported revenue of $ 116.8 million in the first quarter of 2021, compared to about $ 320.8 million in the first quarter last year, a fall of 64%. However, compared to the previous quarter, this is an increase of 5%, compared to about $ 11.6 million in the fourth quarter of 2020.
EBITDR improved and moved to the positive side of $ 2.5 million, compared to a loss of $ 22.3 million in the first quarter of 2020, compared to $ 28.4 million in the previous quarter.
The operating loss was $ 93.2 million, compared to a loss of $ 76.6 million in the first quarter of 2020 and an operating loss of $ 123 million in the previous quarter.
The company's cash flow continued to be negative and stood at minus $ 54 million, although this is an improvement over a negative cash flow of $ 84 million in the fourth quarter of 2020. It should be noted that in previous years the cash flow was positive and sometimes reached $ 100 million.
In the last quarter there was no significant change in the price of jet fuel. The Company's DSL expenses decreased in the reported quarter by approximately $ 63.4 million (a decrease of approximately 73%) compared to expenses in the corresponding quarter last year, mainly as a result of a decrease of approximately 63% in the amount of fuel consumed by the Company's aircraft due to reduced activity. This amounted to $ 23.5 million, on consumption of 14.5 million gallons, compared with about $ 71.2 million on consumption of 39.1 million gallons in the corresponding quarter last year.
According to the company's data, the market share in the first quarter of 2021 returned to its level before the corona and stood at about 23.1%, compared to 16% in the fourth quarter of 2020 (in 2014, the company's share stood at 28%). The next companies with a market share size are EasyJet with 7% and Turkish Airlines with 5%. In 2019, before the corona, El Al's market share was 24.3%, Visair's 5.3%, Turkish Airlines and EasyJet with 4.9% each. Aeroflot with 3.2%, the Israeli Israir and Arkia had a market share of 3.2% each, Rainier with 3.1% and the other international companies with a share of less than 3%.
According to the company, the improvement was achieved mainly through measures to adjust the structure of increases to the volume of activity, a further reduction in the workforce (the departure of 1,900 workers that is expected to be completed during the second quarter of 2021) and a reduction in costs.
In addition, the company announced that it "intends to carry out additional operational and financial operations to save the company's expenses and improve its cash flow, so that with the gradual return of operations, these sources of financing will allow the company, in 2021, to reach a cash balance." Lenders and creditors to spread past debt payments and work on a strategic plan to realize business potential. "
The company expects efficiencies in unpaid expenses, amounting to tens of millions of dollars, which will be achieved, among other things, by changes in work processes, savings in excess inputs and maximization of the company's existing resources.
It will be recalled that the company raised $ 83 million during the quarter from the issuance and exercise of options, and this month signed a financing agreement with the state, in which a sum of $ 210 million was received from the state and in which the company undertook another $ 105 million issuance. Of $ 43 million. Even before that, the company issued warrants in the amount of about $ 75 million, and in addition has raised about $ 7 million so far following the exercise of some of the options issued.
The company said in a statement that it was "considering entering areas related to the company's operations, such as tourism and hotels, in order to maximize the company's revenues, as well as diversify its revenue sources and offer value to frequent flyer club members, which the company sees as an important source of revenue." ".
El Al CEO Avigal Soreq said after the reports: “We have taken as tight a restraint of spending as possible. Recently, in addition to improving results, we have successfully raised about $ 300 million by signing a financing agreement with the State of Israel and issuing options, on the way to achieving the company's goal for 2021 to reach a cash balance. In addition, we are currently completing the complex move of parting ways with about 1,900 employees, and this step, along with other actions we are taking, on the financial and operational levels, will lead us to achieve the said balance. In parallel with the financial operations, we are working to change the perception of the activity of the company, placing the customer at the center. Alongside this, we are working on formulating a strategic plan, which finds the potential inherent in the company and the brand. We believe that the many moves we are taking will put El Al back on track. "