After several years of losses due to the Covid pandemic, which affected operations and led to organizational restructuring and new owners, El Al Israel Airlines Ltd. (TASE:ELAL) returned to profit in 2022. Revenue rose 132% last year and the airline ended 2022 with net income of $109 million, after combined losses of nearly $1 billion in 2020 and 2021. The fourth quarter profit in 2022 was the biggest fourth quarter profit since 2015.
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El Al reported $1.98 billion in 2022, up 132% from 2021. Operating profit was $112.8 billion, compared to an operating loss of $320.4 million in 2021 and a very small operating profit of $2.9 million in 2019.
In the fourth quarter of 2022, revenue was $560.7 million, up 112% from the fourth quarter of 2021. Operating profit in the fourth quarter of 2022 was $46 million, compared to an operating loss of $77.4 million in the fourth quarter of 2021. Net profit in the fourth quarter was $8.5 million, compared to a net loss of $77.4 million in the fourth quarter of 2021 – as mentioned, the biggest fourth quarter profit since 2015.
sees annual revenue of $3.5 billion within five years
The company presented a five-year revenue target of $3.5 billion by 2028, 76% more than in 2022. El Al forecasts 7.5 million passengers in 2028 compared to 4.2 million in 2022.
El Al’s share price has recovered from its low point during the Covid pandemic and is up 4.6% over the past year, but has still fallen 60% over the past five years. The carrier’s current market capitalization was NIS 703 million, when markets opened this morning.
Last week, after intense diplomatic efforts, Oman agreed to open its airspace to Israeli airlines, dramatically shortening flight times to Asia and making El Al more competitive on routes to Thailand. , India and elsewhere.
El Al CEO Dina Ben Tal Ganancia said: “Opening the fast route to flights over Saudi Arabia and Oman is another part of the Abraham Accords, which creates significant opportunities and growth potential for us”.
Published by Globes, Israel business news – en.globes.co.il – March 2, 2023.
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