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EL AL ISRAEL AIRLINES ANNOUNCES PROFITABLE
2010 ANNUAL AND 4Q FINANCIAL RESULTS 
EL AL President Contributes 50% of 2010 Bonus to be Used for    Employee Merit Fund

 

New York, NY - March 29, 2011 - EL AL Israel Airlines, the national airline of Israel, announced successful annual financial results for 2010 as well as for the fourth quarter of the year.  In addition, EL AL President & CEO Eleyzer Shkedy informed the Board of Directors that he would contribute 50% of his 2010 annual bonus to an "Excellence and Employees Fund" that would be awarded to EL AL employees worldwide.

The annual net profit for EL AL in 2010 is $57.1 million, as compared to a loss of $76.3 million in the parallel period of 2009. Gross profits for the year resulted in an increase of 83% to $387.7 million over 2009. The company's overall revenue in 2010 totaled $1.97 billion as compared to $1.65 billion in 2009, a significant increase of 19%.  Cash flow from regular activities in 2010 totaled $203.3 million (a remarkable jump of 807%) from $22.4 million in 2009. And, at the end of 2010, the shareholders' equity doubled to $249 million, as compared to $124 million on December 31, 2009.

The net profit for the last quarter of 2010 was $16.3 million as compared to a $29 million loss in the same period of the previous year.

EL AL President & CEO Elyezer Shkedy attributes the impressive financial success to actions taken by the company, such as a noteworthy growth in revenue from cargo activities which grew by about 37% during 2010. The airline showed a significant increase in revenues, by 19%, a sizeable cash flow that increased more than 800%, and a higher "load factor" to 81.6%, up about 1% over the previous year. "The resulting cash balance of $167.3 million leaves EL AL with an excellent platform for taking advantage of future opportunities to develop growth engines and additional revenue sources," noted Shkedy.

There were a number of notable accomplishments by the airline in 2010 as well as contributions made by the USA branch.

  • EL AL assisted with several humanitarian missions after the devastating earthquake took place in Haiti by bringing plane loads of emergency supplies, dozens of medical personnel as well as search and rescue teams to aid victims.
  • EL AL and Jewish National Fund (JNF) announced another humanitarian project to replant trees in the Carmel Mountains following the horrendous fires in the northern part of Israel.
  • As a result of the volcanic cloud crisis throughout Europe, EL AL arranged dozens of extra flights, thereby airlifting thousands of Israelis to return home on time for the Day of Remembrance and Independence Day.
  • The airline made efforts to renew its fleet for the long-term and added the first 747-400 cargo aircraft. Additionally, the airline purchased a 747-400 passenger aircraft which will soon be added to the fleet and utilized on the USA/Israel route. Lease agreements for five additional aircraft were also signed in 2010.
  • EL AL entered into a partnership with JetBlue Airways, resulting in more convenient and appealing fares for passengers living in or near 35 U.S.A. cities. This is in addition to the existing codeshare agreement with American Airlines. Cooperation agreements with other carriers were also finalized.
  • EL AL was honored as the "Best Airline for Security" in 2010 by readers of Global Traveler Magazine.
  • In the USA, EL AL opened a liaison office to the Christian community , offering a staff which provides expertise on group travel to the Holy Land, the best possible service and attractive fares.
  • EL AL launched nonstop flights between Ben Gurion Airport and the southern beach resort of Eilat.

For more information, please visit EL AL's recently redesigned website, www.elal.com, or call 800-223-6700.  More information can also be found on EL AL's blog, Skywords with EL AL, as well as on Facebook (EL AL Israel Airlines USA) and Twitter (@ELALUSA).

About EL AL
Celebrating more than 60 years of service, EL AL, Israel's national airline, offers the most nonstop flights between New York (JFK/Newark) and Israel as well as the only nonstop service from Los Angeles.  Worldwide, EL AL flies to more than 40 destinations from Israel and serves dozens of other destinations throughout the world (including the USA) via partnerships with many other leading carriers. Only EL AL has first class service on nonstop flights between the U.S.A. and Israel. The airline has annual revenues of about $2 billion and carries 3.6 million passengers every year.

EL AL embodies Israel's values of innovation and the promise of a genuine Israeli welcome.   EL AL. It's not just an airline. It's Israel.

 
Publish Date 30/03/2011