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 International Airlines Ltd., 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 2012, EL AL had scheduled flights to 38 destinations directly, and many other destinations around the globe through cooperation agreements with other airlines. The company also carries more than 100,000 tons of cargo each year.
  As of December 2012, EL AL's fleet included 37 Boeing aircraft in service, with 22 owned by the company. The company is in the process of re-equipment and of reducing the age of its aircraft fleet. As such, EL AL has purchased an additional two Boeing narrow-bodied 737-900s (out of a total six). The first of these aircraft will be begin service in October 2013. The company is also negotiating to purchase a new wide-bodied aircraft. In addition, the company is acting to reduce the age of its fleet and in 2012, has taken all the 757 aircraft out of service.
  The FIMI fund is currently investigating the signing of an agreement to make a major investment in the company. 
  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. In 2012, membership topped the one million mark.
  During 2012, EL AL's market share was 33.6%. Load factor was 82.5%. The EL AL Web site continued its dramatic sales growth both in Israel and worldwide and recorded a 24% increase in direct Internet sales during 2012.
  In 2012, EL AL agreed with Vietnam Airlines Company Limited on a code share agreement for the Tel Aviv/Hanoi and Ho Chi Minh City routes via Hong Kong.  In addition, the company signed a new code share agreement with Thai Airways replacing a previous agreement. 
During the third quarter of 2010, EL AL began operating three daily flights between Tel Aviv (Ben Gurion airport) and Eilat.
  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)	2012	2011
Total Revenues	463.9	485.4
Gross Profit	47.2	83.0
Gross Margins  %	10%	17%
Operating Income	-29.2	8.2
Interest, Net	-5.8	-4.2
Pretax Income	-35.1	4.2
Net Income	-26.5	-7.8

	Year Ended December 31
Income Statement Data ($m)	2012	2011	2010
Total Revenues	2,015.6	2,042.6	1,971.4
Gross Profit	313.3	277.7	386.9
Gross Margins %	16%	14%	20%
Operating Income	11.5	-43.9	87.3
Interest, Net	-37.0	0.3	-25.1
Pretax Income	-24.2	-42.2	62.2
Net Income	-18.8	-49.8	56.5
Diluted Earnings Per Share ($)	-0.04	-0.10	0.11

Balance Sheet Data ($m)	12/31/12	12/31/11
Total Cash & ST Investments	62.6	95.4
Current Assets	295.5	319.4
Total Assets	1,505.6	1,583.1
Current Liabilities	724.7	714.7
Total Equity	151.4	159.7

Key Financial Ratios	12/31/12	12/31/11
Current Ratio	0.41x	0.45x
L-T Debt/Equity	313.2%	347.9%

Dividend Policy

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