Israir Airlines had good news to report to shareholders for the second quarter of 2023.
The airline, owned by Rami Levy Group (BGI Investments Ltd.) since 2020, reported a 14 percent jump in operating profit for the second quarter, and a 24 percent increase in revenues.
A 2022 operating loss of $300,000 on the Eilat route has since transformed to an operating profit of $700,000 for the period April through June of this year.
The airline’s total revenue for the second quarter was $105 million, due in part to the reduction in jet fuel prices coupled with the introduction of six new destinations and an increase in vacation package prices.
Israir’s gross profit rose by 25 percent in the second quarter of 2023, at $14 million.
The implementation of the Quick-Lizard software for dynamic pricing also played a significant role by enabling the airline to adjust flight and holiday package prices based on demand, supply, and market competition, according to Israel Financial Insider.
Nearly all the good news was about revenues concentrated in the airline’s international operations, which rose by 30 percent over the same period in 2020, to a total of $90 million. The news was less encouraging in the domestic sector, with a 27 percent decline in revenues – which totalled just $4 million — compared to the second quarter of 2022.
Israir CEO Uri Sirkis told IFI that he expects the airline will see record-breaking results in the third quarter of 2023. Sirkis noted that sales in the month of August alone surpassed the total sales in the second quarter.
Earlier this year, Israir notified the Tel Aviv Stock Exchange (TASE) it was conducting talks for the purchase of Czech airline “Smartwings.” It was subsequently announced that the deadline for concluding the talks has been extended into 204.