Source::Xinhuanet
XINHUA/RSS
Israel's flag carrier El Al announced on Thursday that its revenue dropped 63.6 percent in the first quarter because of travel restrictions caused by COVID-19 pandemic. According to a financial report issued by the company, its revenue in the first quarter totalled 116.8 million U.S. dollars, compared to 320.8 million dollars in the same quarter of 2020.
At the same time, El Al's operating expenses totalled 165.1 million dollars in the first quarter, 54.3 percent lower than those of 361.4 million dollars in the first quarter last year. El Al announced that it aims to reach a budget balance toward 2022, in which it expects to return to operations at a scale that will yield a positive cash flow.
The company is currently carrying out a wide-scale efficiency-enhancing plan, which includes the layoff of 1,900 employees by the end of June out of about 6,200 employees, most of whom have been on unpaid leave for over a year.
Earlier this month, the Israeli government approved a support plan for El Al, structured as an advance 210-million-dollar payment for flight tickets for government security guards for a period of 20 years.
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