El Al Reports Record Revenue Amidst Competitor Struggles, Announces Dividend
Translated & summarized from N12 by baba
El Al announced record third-quarter revenues of $1.27 billion and a profit of $175 million, while distributing a $116 million dividend. This strong performance contrasts with competitors Israir and Arkia, who are reportedly facing losses. The airline's CEO cited continued high demand and a strong order backlog. El Al is also set to be included in the TA-35 stock index.
The story in 6 lines · by baba
- El Al reported record third-quarter revenue of $1.27 billion, an 18% increase year-over-year.
- The airline announced a dividend payout of approximately $116 million, the second this year.
- Competitors Israir and Arkia are reportedly struggling with losses amid the ongoing conflict and rising costs.
- El Al's net profit was $175 million, with a 95% occupancy rate and a 7% rise in revenue per seat.
- The airline will be added to the TA-35 index, Israel's main stock market index, this evening.
- Israir is in talks to acquire Arkia, potentially impacting flight availability for Israelis.
El Al, Israel's national airline, has announced record-breaking revenue for the third quarter of the year, reaching $1.27 billion, an 18% increase compared to the same period last year. This strong performance comes as competitors Israir and Arkia are reportedly facing significant losses. The airline also declared a dividend payout of approximately $116 million, marking the second such distribution this year. Despite facing increased expenses from fuel prices and currency exchange rates, El Al maintained a high occupancy rate of around 95% and saw a 7% rise in revenue per seat.
The company's net profit for the quarter stood at $175 million, a slight decrease from the previous year, attributed mainly to a one-time charge of $24 million related to a phantom option valuation. However, the operational profit (EBITDAR) saw a 3% increase. El Al's CEO, Levi Hlevi, expressed optimism, citing a strong order backlog of about $1 billion and continued high demand for flights, even with rising fuel costs and intensified competition.
In contrast, Israir reported losses in the first half of the year, citing the ongoing conflict, a strengthening shekel, and rising fuel prices. Arkia, which does not publicly release financial reports, is also estimated to be operating at a loss, with internal disputes between its controlling shareholders and employees. Amidst these difficulties, Israir is reportedly in negotiations to acquire Arkia, a move that could potentially reduce flight availability for Israeli passengers.
El Al's financial success has led to its inclusion in the TA-35 index, Israel's flagship stock market index, effective this evening. This move is expected to prompt institutional investors to adjust their holdings in the company's stock. The previous dividend payment of approximately $106 million was made in January, the first since 2017. The Rosenberg family, the controlling shareholders, is expected to receive about $52 million from the current dividend distribution.
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