Israir CEO Optimistic on Stock Despite Losses, Cites Growth Prospects
Translated & summarized from Globes by baba
Israir Airlines CEO Uri Sirkis is optimistic about the company's stock, forecasting profitability by the end of 2026 despite recent losses. He cites growth prospects, increased passenger numbers, and anticipated price hikes as key drivers. The company is also investing in its Cyprus maintenance center and expects compensation from the state. Israir's stock has yielded a 50% return since its 2022 IPO.
The story in 5 lines · by baba
- Israir CEO Uri Sirkis predicts company profitability by the end of 2026.
- Israir saw a 15% increase in summer passengers, carrying 927,000 travelers.
- The company anticipates higher ticket prices and demand in the second half of the year.
- Israir is investing $10 million to expand its Cyprus maintenance center.
- Israir's stock has returned 50% since its 2022 initial public offering.
Israir Airlines CEO Uri Sirkis expressed strong optimism about the company's stock, predicting it will achieve profitability by the end of 2026, despite recent financial losses. He believes the company's second-half results will be strong enough to offset previous losses and a significant increase in fuel prices. Sirkis highlighted Israir's growth engines and suggested its potential for doubling its value is greater than that of competitor El Al. He noted that Israir has undergone a 5% workforce reduction as part of its efficiency measures.
Sirkis's optimism is partly based on projected increases in average ticket prices and demand in the latter half of the year, alongside a 15% rise in passenger numbers during the summer season, carrying 927,000 passengers. While the company reported a gross profit of only $4 million in the first half, it stated this would have been $40.8 million without "extreme events." Additionally, Israir anticipates a $10 million profit unrelated to flight operations from state compensation for the war with Iran and its aviation club, with a positive impact expected from upcoming flights to the U.S.
Israir is also investing in future growth, including a $10 million expansion of its maintenance center in Larnaca, Cyprus. Sirkis values this center at $40 million, a figure he believes is not yet reflected in the stock price. The center has doubled its maintenance lines since Israir acquired it 2.5 years ago. The company went public in 2022 and has seen its stock yield a 50% return since then, with Rami Levy and Shalom Haim holding a controlling stake.