El Al Israel Airlines Ltd. (TASE:ELAL) has reported strong financial results for the third quarter of 2022 and has had its going concern qualification removed. The company has also reported strong bookings for September-November with strong demand for tickets as the global tourism industry returns to normal after the Covid pandemic.
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El Al reported $626 million revenue in the third quarter of 2022, up 21% from the preceding quarter and up 147% from the corresponding quarter of 2021. Revenue was 3% down from the third quarter of 2019, prior to the pandemic, although El Al was then operating five more aircraft.
El al has a fleet of 45 aircraft of which seven have yet to return to operations and are being refurbished. Five of these seven aircraft will enter use during 2023 and the airline also plans leasing or purchasing an additional Boeing 787 Dreamliner.
The third quarter of 2022 was the second quarter since all travel restrictions due to the pandemic were removed and the global aviation industry began to recover. High demand has returned swiftly leading to similar revenue to 2019.
Operational profit amounted to $103 million in the third quarter of 2022, ten times larger than operational profit in the second quarter. Net profit was $67 million, including $38 million from the partial sale of its frequent flyer club. El Al also had a positive cash flow of $56.9 million in the third quarter and ended the quarter with cash totaling $316 million.
El Al added that it has sold tickets for $646 million between September and November.
Published by Globes, Israel business news – en.globes.co.il – on November 23, 2022.
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