El Al updates its loss forecast to $ 160 million

The company reported this morning to the stock exchange its update on the impact of the Corona crisis on its financial results, in light of the decline in activity in Italy and Japan, as well as the Ministry of Health’s recommendation regarding flights to all world destinations. The Company has updated its activities and its need to make adjustments in operations in order to cope with the decline in activity and revenue.

According to these estimates, the Company is currently anticipating (this has not yet taken into account the implications of the Ministry of Health guidelines issued on March 4, 2020 regarding the requirement for isolation for returning passengers and prohibiting entry of foreign nationals from other countries – France, Germany, Switzerland, Spain and Austria. These have not yet been estimated), a decrease in its estimated revenue attributable to the Corona virus event, in the range of about $ 140 to $ 160 million, for the months of January to April 2020 (including), of which $ 80 to $ 90 million for the first quarter of 2020. In the Company’s estimation, the decrease is expected to offset, in part, with a reduction in the company’s operating expenses. Accordingly, at this stage, the Company estimates that the impact of such decline on the Company’s results for the months of January to April 2020 (inclusive) is expected to be in the range of $ 70 to $ 90 million, of which approximately $ 35 to $ 45 million for the first quarter of 2020.

In light of the above, the Company performs, inter alia, the following: The Company makes significant adjustments in its activities and in the network of networks in accordance with the decisions of the government factors and in accordance with the decrease in demand, the Company carries out operational and financial operations aimed at reducing its expenses and reducing the decrease in cash flow. The company carries out labor relations activities. The company contacted the Ministry of Finance for support from the State of Israel and held talks on the matter.

Naturally, it is a variable event that is not controlled by the company and factors such as the continued spread or stopping of the virus, decisions by relevant countries and authorities in the country and around the world to stop or resume flights to different destinations or to set guidelines regarding different destinations or changes in demand, may affect the company accordingly.

The company continues to monitor developments in the country and around the world, the decisions of the government and the decline in demand.