El Al Israel Airlines Ltd (level:AlThe Israeli airline continued to benefit from the war in the first quarter of 2024. The Israeli carrier achieved profits of $80.5 million in the first quarter of 2024 compared to a net loss of $34.4 million in the corresponding quarter of 2023. The financial results for the first quarter were: The best financial results ever during one quarter in the company's history. The $80.5 million represents two-thirds of net profit for the entire year of 2023, which was one of the best years in the company's history.
The reason for these unprecedented results is that following the cancellation of flights by many foreign airlines, El Al has a “de facto” monopoly on many major routes to and from Israel. El Al was responsible for 62% of passenger traffic at Ben Gurion Airport in the first quarter of 2024, according to the Israel Airports Authority, compared to 22% in the first quarter of 2023.
El Al, which is 47.4% controlled by the Rosenberg family, generated revenues of $738 million in the first quarter of 2024, up 48% from $500 million in the corresponding quarter of 2023, and higher revenues than the second and third quarters of last year. (Summer Districts) are traditionally the strongest.
The company said: “Because the war brought about major changes in passenger traffic in Israel and in the offer of flights in the market, demand for the company’s flights increased in the first quarter of 2024, despite the gradual return.” Foreign airlines continued to grow stronger and even increased.
“The company is witnessing an increasing demand for its flights in terms of the seat capacity that it can provide, and it continues its operational efforts to increase the supply of flights as much as possible, within the limits of its capacity, and it makes commercial and operational flights. For this reason, the traditional seasonal trend, in which the winter months witness a decrease in Passenger traffic was not reflected in the current quarter, and therefore this period was characterized by the levels of demand that the company witnesses in peak seasons in normal times.
El Al also believes that the second quarter will continue to be strong. The company said: “Due to the relative increase in passenger traffic in Israel during Passover and with the beginning of the summer period, and despite the continued gradual return of foreign airlines, an increase of about 4% in revenue per seat kilometer (RASK) is expected in the second quarter of 2024.” , compared to the first quarter of 2024, which, combined with increased activity as described above, may have a positive impact on the business results for the second quarter of 2024.”
Published by Globes, Israel Business News – en.globes.co.il – on May 29, 2024.
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