El Al Israel Airlines (TASE:ELAL), run by Kenny Rosenberg, is in talks with the government to allow it to move forward the date it can distribute dividends from its profits, Globes reported. The dividend distribution could come after the company releases its 2024 results, which are expected to show record profits in the coming weeks.
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El Al has made exceptional profits over the past year as the war forced most foreign airlines to stop flying to Israel, allowing it to raise fares. It posted a profit of $411 million in the first nine months of 2024 and has more than $1 billion in cash.
El Al Airlines, headed by Dina Ben Tar Ganancia, has pledged not to distribute dividends until the end of 2025, under an agreement with countries on aid to airlines during the coronavirus pandemic. On December 30th of last year, the government announced the following: has decided to extend its agreement with El Al regarding the provision of security for Israeli Airlines until February 28, 2025. The company’s update also states that “the Treasury will consider reducing state participation in airline security costs.” Israeli Airlines (retroactive to January 1, 2025).
El Al said it was negotiating with the state to gradually reduce the state’s participation in security costs “in the course of a review of the supplementary agreement.” The notice did not specify that it referred to the distribution of dividends.
El Al’s share price rose 6.3% this morning, giving it a market capitalization of well over NIS 4 billion. Over the past three years, El Al’s stock price has increased more than 217%, thanks in large part to last year’s success.
In response to the report, El Al said: “As reported by El Al to the stock exchange on December 30, 2024, the company is negotiating with the state regarding the agreement concluded in 2021-2022. This includes reductions in the company’s stated commitments.” In those agreements. ”
Published by Globes, Israel Business News – en.globes.co.il – on January 20, 2025.
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