El Al Isreal Airlines (ELAL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $839.1M, up $210M year-over-year, with net profit rising to $147.4M, a 150% increase, driven by high demand, improved cargo performance, and route optimization.

• Strategic focus on fleet renewal and expansion, with major aircraft acquisition deals and codeshare agreements signed to enhance market reach and operational efficiency.

• Cash and deposits at June 30, 2024, totaled $1.09B, supporting a return to positive equity of $200M after a successful equity offering.

• Execution of the strategic plan remains a top priority, with ongoing network optimization and new codeshare agreements enhancing market reach.

Financial highlights

• Q2 2024 EBITDA was $265M (31.6% margin), up from $163M in Q2 2023; EBITDAR reached $196M, and free cash flow after debt service was $160M.

• Cash balance exceeded $1B, with available funds at $1.09B, and equity position improved to $200M.

• Booking pace and net sales for June–August 2024 significantly outpaced 2023, reflecting robust demand recovery.

• Free cash flow for 2023 was $92M (adjusted), with a business plan target of $195M.

Outlook and guidance

• Strategic plan targets $3.5B in revenue and 17–21% EBITDAR margin by 2028, with a goal of transporting nearly 8M passengers annually and net debt/EBITDA of 3–4x.

• Fleet renewal and expansion expected to increase seat capacity from 6.2M in 2023 to 8.8M by 2031, supporting market share and efficiency goals.

• Free cash flow is projected to increase post-fleet expansion, with debt service not expected to rise significantly.