El Al’s plans for a billion-dollar fleet of Dreamliners are coming to fruition as a deal was closed for procurement of two of the 787-8 planes from Boeing, Globes reported.
Proclaimed by CEO David Maimon as “the largest procurement plan in El Al history,” it calls for the purchase of 16 787-7 and 787-9 Dreamliner planes, motors and spare parts in an agreement valued at $1.025 billion.
On Monday, El Al confirmed signing a sale and leaseback agreement with an undisclosed foreign company for two of the 787-8’s.
Like other carriers, El Al has benefited from the worldwide slump in oil prices. Last month, it reported for the first half of 2016 a net profit of almost $14 million, after making a profit of slightly more than $1 million in the corresponding half of 2015. Its semi-annual revenue remained stable, at $934 million.
Accordingly, El Al share prices have increased 125 percent in the last year, reflecting a market cap of NIS 1.7 billion. In the past three years, El Al shares had the second highest return on the stock exchange (second only to electric appliance importer Tadiran Appliances), surging by 740 percent.