Israeli leisure operator Israir is attributing an improvement in second-quarter profit to its investment in technology, which has helped offset the impact of the Gaza conflict.
Israir’s second-quarter net profit reached just over $7 million, a 44% improvement on the previous year, although its first-half net figure was down by 19% to $6.3 million.
Its results for the quarter – as well as the first half – are a “direct result of considerable investment in operational and commercial technologies”, it says.
“This investment resulted in an increase in the average income for the segment and a particularly high income from the sale of ancillary products.”
It adds that the reception of additional aircraft also contributed to the “sharp increase” in gross and operational profitability.
Israir says it expects this profitability will continue to improve once the conflict, which began last October, ends.
“In other words, the war is not a factor in improving the company’s results,” it stresses.
Israir acknowledges that the conflict has caused a decline in competition, but states that it has affected its tourism business, and puts the impact for the second quarter at $2.5 million.
Revenues over the second quarter fell by 15% to $89.3 million, and were down by a 22% over the first half.
Israir has a fleet of eight Airbus A320s and four more are being wet-leased to provide extra summer capacity.
