El Al Israel Airlines Ltd.

ELALTASEIL0010878242₪9.7B

Investment Thesis

Earns revenue chiefly by carrying passengers on scheduled, charter and special flights and by transporting air cargo, with smaller streams from selling loyalty points to card-issuing partners, airline catering, duty-free merchandise and maintenance services for other operators.

Geographic Exposure

Europe44.12%

Americas39.94%

Asia and Africa (excluding Israel)13%

Unallocated (ancillary revenue)2.94%

IsraelN/A

Revenue Drivers

Scheduled and charter passenger carriage

Carries passengers on scheduled, charter and special flights, with flight-related ancillary sales

CORE90.9%

Air cargo carriage

Transports freight in passenger aircraft holds and in dedicated freighter aircraft

PERIPHERAL6.1%

Frequent-flyer loyalty programme

Sells loyalty points to financial partners through co-branded credit-card arrangements

PERIPHERAL1.1%

Airline catering production

Produces and supplies kosher airline meals and catering to outside customers

PERIPHERAL0.8%

Duty-free merchandise sales

Sells duty-free products to travellers

PERIPHERAL0.6%

Third-party aircraft maintenance services

Provides routine and comprehensive maintenance for aircraft of outside operators

PERIPHERAL0.3%

End Markets

Leisure and business air travellers
Travel agents and tourism wholesalers
Cargo shippers and forwarders
Other airlines buying catering and maintenance
Financial institutions issuing co-branded credit cards
Companies and organisations ordering special flights

Specializations

Kosher airline meal productionCo-branded credit-card loyalty partnershipsShort-haul leisure network flying through a dedicated subsidiaryCharter capacity sold wholesale to tourism operatorsGroup and special-request flight operationsAviation startup acceleration and collaboration+1 more

Activities

Airline network operation
Aircraft maintenance and overhaul
Airline meal manufacturing
Loyalty programme and co-branded card management
Aviation and tourism venture development