EL Al Israel Airlines announce Q4, FY 2017 financial results

EL Al Israel Airlines´ (TASE: ELAL) revenues in 2017 increased by about 3% to approx. USD 2,097 million, compared to approx. USD 2,038 million in the previous year; the growth in revenues arises from the continued growth in the number of passengers flown by the company, which increased by approx. 2.4%, and the 1% improvement in income per RPK (Yield), the company said.

Load factor in 2017 amounted to 84.7% compared to 84% in 2016.

The company´s market-share of passenger traffic at Ben-Gurion Airport in 2017 stood at approx. 28.5% compared to approx. 32.6% in the previous year, due to the sharp increase of about 16% in passenger traffic at Ben Gurion Airport, higher than the rate of growth of EL Al´s operations at the Airport, which recorded an increase of 2.4% and amounted to approx. USD 5.6 million passengers.

Operating expenses in 2017 increased by approx. USD 110 million compared to 2016, inter alia, as a result of an increase in payroll expenses, affected by the strengthening of the shekel against the dollar, wages agreements and a provision for bonuses in respect of the previous year. Additionally, an increase in fuel expenses was recorded due to the increase in jet fuel prices, tax assessment expenditure, and more.

Operating profit in 2017 amounted to approx. USD 29 million, compared to approx. USD 110.6 million in 2016.

El Al Israel Airlines Ltd. is the National Air Carrier of Israel. In 2017, El Al recorded revenues amounting to nearly USD 2.1 billion. El Al carries about 5.6 million passengers a year. The company operates flights to about 34 direct destinations around the world and many other destinations by means of cooperation agreements with other airlines, thus it currently operates 44 aircrafts, of which 27 are owned by the company.