EL AL Israel Airlines Ltd.

  EL AL Israel Airlines, established in 1948 as Israel's national airline carrier, has since led the country's passenger and cargo air transportation sector. Its main activities are passenger and cargo transport via scheduled flights. Charter flights are carried out by Sun D'or, a wholly owned subsidiary, that acts as a tourism organizer. In addition, the company sells duty free items and prepares and supplies in-flight food through subsidiaries and affiliates and provides maintenance services to other airlines.
  In 2011, EL AL had scheduled flights to 34 destinations directly, and many other destinations around the globe through cooperation agreements with other airlines. The company also carries more than 110,000 tons of cargo each year.
  As of December 2011, EL AL's fleet included 41 Boeing aircraft (28 owned by the company). In 2011, EL AL agreed to purchase four Boeing 737-900ER aircraft, for delivery between October 2013 and 2015 (plus an option for an additional two) and one Boeing 747-400.
  In January 2010, EL AL's Board of Directors appointed Brigadier General (res.) Eliezer Shkedi as President and CEO of EL AL. Shkedi's last position was Commander of the Israeli Air Force. 
  EL AL strives to provide a rich flying experience including a wide choice of quality entertainment programs, a variety of meals and sale of duty-free items.  EL AL's Frequent Flyer club is a popular, long-established program, offering special benefits to loyal customers.
  During 2011, EL AL's market share was 31.5%. Load factor was 82.4%, higher than the 81.9% average load factor of other airlines operating in Israel. The EL AL Web site continued its dramatic sales growth both in Israel and worldwide.
  During the third quarter of 2010, EL AL began operating three daily flights between Tel Aviv (Ben Gurion airport) and Eilat. In 2010, as part of the company’s strategy to fly to new destinations, EL AL signed a code share agreement with Aerosvit (VV). In addition, the code sharing agreement with American Airlines (AA) was expanded to 22 additional destinations and the code sharing agreement with Siberia (S7) was expanded to nine additional destinations. During 2012, EL AL signed a cooperation agreement with the Canadian airline, WestJet to extend the number of destinations in North America.    
  EL AL remains determined to promote its vision of leading the Israeli aviation market and establishing itself as the first choice for air travel to and from Israel. The company's Chairman of the Board Amikam Cohen, CEO of Hutchison Water Holdings and former CEO of Partner Communications, has called for a new strategic plan that  will prepare the company for the challenges of the coming years and respond to increased competition in the aviation industry and the world economic crisis.

	Three Months Ended December 31
Income Statement Data ($m)	2011	2010
Total Revenues	485.4	492.0
Gross Profit	83.0	98.2
Gross Margins  %	17%	20%
Operating Income	8.2	22.1
Interest, Net	-4.2	-4.1
Pretax Income	4.2	18.1
Net Income	-7.8	16.3

	Year Ended December 31
Income Statement Data ($m)	2011	2010	2009
Total Revenues	2,043.2	1,972.2	1,655.8
Gross Profit	278.3	387.7	387.7
Gross Margins %	14%	20%	13%
Operating Income	-43.3	-88.0	-75.0
Interest, Net	0.3	-25.1	-26.3
Pretax Income	-41.6	63.0	-100.8
Net Income	-49.4	57.1	-76.3
Diluted Earnings Per Share ($)	-0.10	0.11	-0.15

Balance Sheet Data ($m)	12/31/11	12/31/10
Total Cash & ST Investments	95.4	174.6
Current Assets	322.1	413.6
Total Assets	1,585.8	1,721.2
Current Liabilities	714.7	732.3
Total Equity	161.8	247.5

Key Financial Ratios	12/31/11	12/31/10
Current Ratio	0.5x	0.6x
L-T Debt/Equity	343.5%	226.7%

Dividend Policy

Dividend distribution from time to time, according to Board of Directors decision and company needs.