El Al Israel Airlines Ltd. (TASE:ELAL) has published its results for the third quarter of 2023 and related to the impact of the Israel-Hamas war.
El Al said, "The effects of the war, which broke out after the date of the financial report, will have financial consequences for the company, and in particular as a result of the gap in working capital and the cash balance that may arise between the amounts that the company will be required to return due to flight cancellations following the war, and the cash that will be generated as a result of the sale of airline tickets for future periods."
"Prolongation of the war and its nature on various fronts, the economic instability and the uncertainty prevailing in the economy may have additional consequences for the company, which will affect the company's financial situation."
The airline added, "The company has examined expected cash flow in the foreseeable future due to the impact of the war, depending on the duration, the extent of its impact and the rate of return to normalcy. As of the date of approval of the financial statements, and given the scope of activity and the current levels of demand, the company expects meet its commitments."
In the third quarter revenue was $696 million, up 11% from $626 million in the corresponding quarter of 2022. Net profit was $52.4 million, down from $66.8 million in the corresponding quarter of 2022 when there was a one-time payment for the sale of the airline's loyalty club.
El Al is one of the few airlines that has continued to fly to Israel since the start of the war. El Al CEO Dina Ben-Tal Ganancia told "Reuters," "These days we have a deep national responsibility towards the people and the country. We quickly adapted ourselves to emergency mode and made sure to maintain a stable and active flight schedule while taking care of passengers' safety and security."
The airline said that changes since the start of the war included route adjustments such as an increase in flights to Asia and suspension of flights to other destinations, and postponement of new routes.
El Al told "Reuters" that consumer behavior has changed, with more customers making last-minute bookings rather than advance reservations months ahead. El Al has also boosted cargo flights to transport essential equipment to Israel.
Published by Globes, Israel business news - en.globes.co.il - on November 30, 2023.
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