srair recorded a net loss of about $ 9 million compared to a profit of about $ 11 million

Israir, controlled by Rami Levy and Haim Shalom, published its financial statements for the third quarter. The company recorded a net loss of about $ 9 million, compared to a profit of about $ 11 million in the corresponding quarter in 2019 and a loss of about $ 3.5 million In the same period last year.
The increase in the quarterly loss is due, among other things, to one-time provisions amounting to approximately $ 4 million in respect of reorganization expenses and a reduction in the number of employees, The workforce reached about 320 employees, compared to about 500 employees in the corresponding period in 2019.
Israir also increased provisions for doubtful debts, in light of the continuing crisis and the increase in industry risk. The company posted an operating loss of $ 1.9 million in the third quarter compared to a profit of $ 900,000 in the same period last year. The cash balances in the company's coffers, at the end of the third quarter, reached about $ 30 million. On the other hand, the company's revenues doubled to $ 40 million compared to $ 20.4 million in the corresponding quarter last year. This is still a decline of 65% compared to the same quarter in 2019, pre-Corona.
Israir notes that "the prime minister's call at the end of June, not to fly abroad and not to book flights abroad, led to a halt in customer bookings and severely hampered the operational and marketing preparations for the summer season." The company stated that it "continues the trend of improvement and growth in the operational indices due to the fact that it has adopted a different approach in dealing with the corona crisis, according to which the company's activity did not cease, and is focused on a quick return to 2019 operating data." For activity in 2019 and will increase gross profitability. "
According to Uri Sirkis, CEO of Israir, "The positive point is that out of a loss of $ 9 million, $ 7 million comes from depreciation expenses and one-time provisions. So in terms of cash flow, the company has maintained its financial stability. "
The controlling shareholders of Israir are continuing their efforts to issue the company, despite fears of repeated aviation damage due to the new Corona variant, and this week submitted a prospectus to the stock exchange. The last two months (September and October) Due to the upheavals in the aviation and tourism market, and its value has meanwhile been updated from NIS 400 million to NIS 300 million (subject to a change in the state of aviation).
In the first phase, the company will issue rights and raise NIS 40 million to repay a debt of BGI investments in the amount of NIS 33 million, which it took to purchase Israir. In a few months, the public offering will take place, after which it will be possible to consolidate the Israir and BJI Investments reports, through which Levy acquired control of Israir.