El Al Israel Airlines Ltd. (TASE: ELAL) today reported its results for the first quarter of 2017. Revenue from activity rose from $396 million in the first quarter of 2016 to $418 million in the first quarter of this year, a 5.3% increase.
Passenger segments grew 7.1% in the first quarter, compared with the corresponding quarter last year. El Al's supply of airplane seats was up 1.3%. The company's activity in terms of revenue passenger kilometers (RPK) increased by 5.1%. The airline's load factor reached 83.7%, 4% more than in the corresponding quarter last year.
El Al's market share at Ben Gurion Airport was 32.8%. The number of passengers there flying El Al rose 7%, while passenger traffic at Ben Gurion increased by 17%.
El Al's pre-tax loss in the first quarter was $39 million, compared with $34 million in the first quarter of 2016.
Net loss amounted to $30 million in the first quarter, up from $21 million in the corresponding quarter last year. The increase in loss resulted from higher salary costs (mostly due to one-time bonuses for 2016 and shekel appreciation) and higher jet fuel costs.
Cash flow from current activities rose from $72 million in the first quarter of 2016 to $77 million in the first quarter of this year. EBITDA dipped from $11 million in the first quarter of 2016 to $10 million in the first quarter of this year. As of March 31, 2017, El Al had $228 million in cash.
Commenting on his airline's results, CEO David Maimon said, "The company reported impressive operating results in the first quarter, better than in the corresponding quarter last year, with 5.3% growth in revenue in the quarter, despite growing competition and enhancement of the open skies policy at Ben Gurion Airport. The number of passengers flown by the company rose 7%, the supply of seats 1.3%, company activity 5%, and the load factor was up 4% to 83.7%, which was particularly high in a quarter during the off-season.
"As part of the airline's strategy of expanding its network of routes, we are preparting to open a new route to Miami at the beginning of November this year."
Maimon added, "The frequent flyers club in Israel and worldwide, especially the Flycard credit card, are a significant growth engine, and are growing impressively. The number of people holding the credit card stands at 220,000 customers at present. The number of club members also continued to grow, reaching over 1.8 million members.
"The company is in the final stages of preparation for receiving the Dreamliner airliners, with the first expected to arrive this August. These airliners will provide our customers with maximum comfort, a customer experience, and high-quality service. They will improve the company's ability to continue its successful handling of the market conditions in the face of growing competition."
Published by Globes [online], Israel Business News - www.globes-online.com - on May 24, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017