El Al Reports Record Annual Net Profit of $545 Million in 2024

El Al announced its financial reports for the fourth quarter of 2024 and for the year 2024 this morning. The data shows that revenues in 2024 increased by about 37%, and the annual net profit amounted to about $545 million.

The company's annual revenues amounted to about $3.4 billion, an increase of about 37% compared to 2023, and revenues in the quarter amounted to about $851 million, an increase of about 26% compared to about $678 million in the corresponding quarter.

The available seat kilometers (ASK) in 2024 increased by about 12% compared to last year, and in the fourth quarter, it increased by about 9% compared to the corresponding quarter with the company's continued expansion to maximize the flight schedule as much as possible and enable an air bridge between Israel and the world. The expansion of production capacity after the exit from the Corona crisis and the addition of wet-leased aircraft to the company's service enabled the significant increase in ASK.

The revenue per available seat kilometer (RASK) in 2024 increased by about 24% compared to last year, mainly due to a significant and exceptional increase in the occupancy rate (LF) which jumped to about 94% compared to about 86% in 2023, and also from an increase in revenue per passenger kilometer (RRPK) which increased by about 14% compared to 2023. The RASK in the fourth quarter increased by about 21% compared to the corresponding quarter, here too due to a significant increase in the occupancy rate (LF) which jumped to about 96% compared to about 84% in the corresponding quarter and also from an increase in revenue per passenger kilometer (RRPK) which increased by about 6% compared to the corresponding quarter. The increase stems, among other things, from a change in the ticket mix, an increase in demand for luxury departments, a change in the destination mix, and a focus on central destinations, alongside exceptional occupancy rates and increased demand for flights.

The annual EBITDAR amounted to about $1.1 billion, twice as much as in 2023, while in the quarter it amounted to about $275 million, an increase of about 71% compared to the corresponding quarter last year.

The net profit in 2024 amounted to about $545 million, compared to about $117 million in 2023, 4.7 times. The net profit in the quarter amounted to about $130 million, compared to about $40 million in the corresponding quarter last year, 3.3 times. The growth in profit stems from an increase in the available seat kilometers (ASK), an increase in the occupancy rate (LF), an increase in revenue per available seat kilometer (RASK), from the significant efficiency made by the company after the Corona, from focusing El Al's route network and diverting the planes from the destinations where there was a significant drop in demand in favor of very popular destinations, from an increase in cargo revenues and from an improvement in the group's financing expenses.

The company's cash flows from operating activities in 2024 amounted to about $1.4 billion compared to about $453 million in 2023. The company's cash flows from operating activities in the fourth quarter amounted to about $355 million compared to about $172 million in the corresponding quarter. The growth stems from an increase in profitability and an improvement in the company's working capital, mainly affected by the pre-sale of flight tickets for the demand seasons.

The company reported that it is updating its long-term strategic plan, extending it until 2030. The update includes adjusting the pace of expanding the aircraft fleet according to the expected supply rate, optimizing the route network, developing comprehensive tourism services and integrating them into the customer journey, MRO services (maintenance, repair, and overhaul) for other companies and examining global expansion, new products and services including credit, insurance, and retail and positive cash flows to examine investment opportunities.

Dina Ben Tal Gannesia, CEO of El Al: "2024 posed complex national and business challenges to us, but we proved our ability to cope with them successfully. Despite the challenges, we managed to maintain the air bridge between Israel and the world during a multi-front war, alongside the continued implementation of the strategic plan. These successes would not have been possible without the dedication of all El Al's loyal people, who throughout the period work day and night to enable the company's functional continuity. El Al operated throughout the war with a meticulous pricing policy, setting maximum prices and setting uniform prices for several destinations. These actions have proven themselves and it can be seen that in 2024 there is a conditional increase of only 14% in the average price per passenger, compared to 2023. Our goal is to continue to maintain financial stability and bring the company's growth in all areas. We will continue to adhere to the implementation of the strategic plan, which we are updating and extending today, in order to bring El Al to global success in all areas of tourism and aviation, with an emphasis on the European and American market. We welcome the return of foreign companies and continue to establish El Al's position as a strong and leading Israeli airline, contributing to the country's economy and society in Israel. We will continue to work to enable our passenger audience to rely on us, that we will always be there at the moment of truth."

Yankela Shahar, CFO of El Al: "We are summarizing another quarter and another year of growth, which stems, among other things, from an increase in activity volumes and high occupancy rates, alongside meticulous management of the route network and maintaining the efficiency plan. Since the beginning of 2024, we have significantly strengthened the company's financial profile, improved liquidity, and dramatically reduced the net financial debt balance, which stands at only about $75 million. This is a record year for El Al, which is facing the implementation of a large-scale equipment plan, and will still maintain a low debt level so that the debt to EBITDA ratio will be less than 3. We predict that the company will cross the $4 billion revenue threshold in 2030."