El Al Israel Airlines swung from a $28 million loss in 2014 to a US$107 million net profit in 2015.
Reasons for the turnaround include lower fuel prices, new aircraft and increased demand thanks to new pricing for Up, El Al's low-cost airline, according to president and CEO David Maimon.
Revenue declined 1.3% year over year to US$2.081 billion. Operation costs decreased in 2015 by approx. US$210m, amounting to approx US$1.593bn, a decline of approx. 12% compared to 2014, mainly due to a drop in fuel costs.
The Company’s EBITDA amounted in 2015 to approx. US$331m, compared to approx. US$129m in 2014 – an increase of approx. 156%. Cash flow from operating activities in 2015 amounted to approx. US$271m, compared to approx. US$163m in 2014. El Al carried over five million passengers in 2015, 8% more than the 4.7 million carried in 2014, among other things because of the launch of the UP brand as a response to competition from low-cost airlines.
El Al CEO David Maimon said, "Thanks to outstanding workers, a dramatic improvement in operating efficiency because of the fall in the price of fuel, the introduction of new aircraft, flights with modular pricing under the UP brand that boosted demand, substantial investment in the e-commerce website, and the signing of a historic pay agreement, we are presenting record results.
"I hope that we shall shortly sign a pay and productivity agreement with the pilots that will enable us to make a further improvement in efficiency and also to improve their salaries by sharing the saving with them. In that way, we shall be able to continue with the accelerated development of the company and our service to passengers, in the face of growing competition in the global aviation market."
