El Al Israel Airlines Ltd. (TASE: ELAL) has reported that in the first quarter 2020, revenues decreased by about 25% to approximately USD 321 million, compared to revenues of approximately USD 429 million in the first quarter of 2019, the company said.
The Company recorded a net loss of approx. USD 140 million, compared to a loss of USD 55 million in the first quarter of 2019.
The results for the first quarter of 2020 were significantly affected by the coronavirus crisis, following which the company ceased the scheduled passenger operations and sent the majority of its employees to unpaid leave.
Cash balances and short-term deposits in the Company´s account as of March 31, 2020, amounted to approx. USD 131 million.
In the first quarter of 2020, the effects of the coronavirus crisis have taken hold. The pandemic has seriously disrupted all economic sectors worldwide, with the tourism and aviation industries being most adversely affected by the pandemic.
The crisis has led to a dramatic reduction in demand for passenger flights and an unprecedented numbers of flight cancellations, and therefore, the Company cancelled many flights already in February 2020, and finally announced a complete halt of passenger flights as of mid-March 2020, due to Government guidance addressing these circumstances and the fear of contraction of the virus.