El Al Israel Airlines reported a nearly 150% surge in profit in the second quarter, capitalising on reduced competition as many foreign carriers suspended flights amid the ongoing Gaza conflict.
The national airline posted a net profit of $147 million, up from $59 million a year ago, with revenue jumping 33% to $839 million. The airline’s passenger load factor rose to 92%, as it increased capacity by 8%.
El Al has faced criticism for high fares during the crisis, as it operates with near-monopoly status due to the cancellation of many international flights to Israel. However, CEO Dina Ben-Tal Ganancia denied accusations of price-gouging, emphasising that half of El Al’s passengers paid less than they did in 2023. She explained that security uncertainties had led to last-minute bookings, driving demand beyond supply. The airline has responded by adding flights, particularly for stranded passengers from Greece, Cyprus, and other areas, as well as boosting routes to the U.S. and Asia.
In addition to its financial performance, El Al announced a deal with Boeing to purchase up to 31 737 MAX aircraft, worth up to $2.5 billion, to modernize its aging fleet of Boeing 737-800 and 737-900 planes. Despite strong earnings, El Al’s Tel Aviv-listed shares fell 2%, reflecting investor concerns about the ongoing security situation.
Many international carriers, after briefly resuming service in June, have once again cancelled flights to Tel Aviv amid threats of further conflict. Some airlines have suspended operations until 2025, reinforcing El Al’s position as Israel’s primary air carrier during the ongoing crisis.
(Source: Reuters)