El Al Israel Airways’ (TASE: ELAL) income jumped 146% within the first quarter of 2022 as compared with the primary quarter of 2021, to $283 million. The sharp rise got here primarily in March, when gross sales had been greater than they had been in March 2019, pre-pandemic, as demand for flights and holidays surged.
Alongside the rise in gross sales, nevertheless, working bills additionally rose sharply, by 77%, to achieve $293 million within the quarter, primarily due to a 247% rise in expenditure on jet gas to $83 million, as international oil costs leapt. The corporate subsequently posted a gross lack of $10 million, which compares with a gross lack of $48 million within the corresponding quarter of 2021.
The compensation expense rose by $46 million as furloughed workers returned to work, and gross sales bills rose by $20 million, as compared with the corresponding quarter.
El Al posted an working lack of $45 million, which compares with a $76.5 million working loss within the corresponding quarter, and a web lack of $66 million, which compares with a web lack of $86 million within the corresponding quarter.
Moreover the rising value of jet gas, El Al can also be having to deal with a dispute with its pilots, which lately led to a variety of flight cancellations.
El Al had optimistic money move from common exercise of $22 million within the first quarter of this yr, which compares with damaging money move of $54 million within the corresponding quarter. Its auditors proceed to append a going concern qualification to its monetary statements.
El Al’s market share at Ben Gurion Airport was 22.3% within the first quarter.
El Al additionally provided gross sales figures for the present quarter. Gross sales in April had been $177 million (94% of the determine for April 2019), and gross sales to this point in Could are $267 million (10% greater than within the equal interval in 2019).
El Al however continues to hunt sources of finance and to reschedule previous money owed, and to request postponement or waivers from lenders and collectors. The deal whereby The Phoenix will lend El Al $130 million convertible right into a 25% stake in El Al’s Frequent Flyer Membership ought to shut within the coming months.
Through the first quarter, El Al’s controlling shareholder Kanfei Nesharim Aviation, owned by Kenny Rozenberg, injected $20 million into El Al as an proprietor’s mortgage, and the State of Israel injected $38 million towards a bond situation. The state additionally paid $20 million as an advance on El Al’s expense in offering safety companies to Israeli airways.
On the finish of the primary quarter, El Al had a deficit on shareholders’ fairness of $590 million (up $60 million) and its present liabilities totaled $2.17 billion, $233 million greater than on the finish of the primary quarter final yr. The expansion in liabilities stems from advance ticket gross sales, an increase in balances owed to suppliers, and the proprietor’s mortgage).
Printed by Globes, Israel enterprise information – en.globes.co.il – on Could 18, 2022.
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