Israeli flag-carrier El Al is preparing for a share offering valued at around $62 million, as part of its effort to solidify its financial position.

The airline is also finalising discussions with insurance firm Phoenix Group over a $130 million loan against its frequent-flyer programme, and expects to finish the negotiations in the second quarter.

El Al has entered a series of agreements with its controlling shareholder and the government over various means of financial support.

It received around $20 million from the shareholder, as a loan, during the first quarter, along with $38 million from the state against issues of bonds, plus $12 million relating to fuel expenditure. The government has also advanced $20 million for security expenses.

The Phoenix Group discussions follow a non-binding agreement in principle in March.

Phoenix will loan up to $130 million to El Al, for repayment by the end of 2027, with the investor receiving options to purchase 25% of the loyalty programme’s shares.

El Al fleet-c-El Al

Source: El Al