El Al and Israir Navigate War Challenges, Report Strong Financial Performance in Q3 2023

In a resilient display of financial strength amid the challenges posed by the ongoing war, El Al, under the leadership of CEO Dina Ben Tal Gnansia, has reported an impressive 11% increase in revenues for the third quarter of 2023 compared to the same period last year. The company's quarterly reports, released today, highlight a total revenue of $696 million, with a net profit of $52 million after deducting one-time income, reflecting a remarkable 70% surge.

This substantial growth is attributed to several factors, including a 15% decrease in the price of jet fuel, increased current activity, and an ongoing streamlining process. El Al's market share rose to 22.2%, compared to 21.5% in the corresponding period, with a notable increase of 23% in passenger numbers, reaching 1.662 million for the quarter.

CEO Dina Ben Tal Gnansia expressed confidence in the face of the war's impact on operations, stating, "We are experienced in dealing with crisis situations and will also deal with the complex challenges." The company's proactive response to the war situation includes guarding Israel's air bridge and facilitating the return of citizens, especially those recruited under Order 8, with 150 additional flights and increased cargo operations.

Despite the foreign airlines suspending flights to Israel, El Al seized the opportunity, becoming the sole airline connecting Tbilisi to the world. El Al's financial recovery in Q3 is further evidenced by a 60% increase in cash flow from current operations, totaling $92.3 million.

In a noteworthy stance, El Al clarified that it is not seeking financial aid from the government but advocates for legislation prioritizing local airlines during times of crisis, akin to the American law favoring domestic companies on government employee flights.

Meanwhile, Israir, under Rami Levy's control, reported record revenues of $143.3 million in the third quarter, reflecting a 15% jump. However, the net profit decreased by 11%, amounting to $13.5 million, primarily due to a 19% increase in the cost of sales. Israir operated 1,444 flights in the quarter, compared to 1,061 in the corresponding period.

Despite the challenges posed by the war, Israir experienced only a 5% decrease in passenger numbers during October, credited to rescue flights and the cessation of foreign airline operations.

Both El Al and Israir remain optimistic about weathering the storm, with their financial performances showcasing resilience and adaptability during these uncertain times.