El Al Posts Record Quarterly Revenue on Peak Summer Travel and Scarce Competition
Israel's flag carrier reported all-time high third quarter revenue of $1.27 billion as strong demand and the absence of most foreign rivals kept its planes 95 percent full.
By Isabella Kaur ·
El Al recorded the highest quarterly revenue in its history in the third quarter of 2026, as Israel's flag carrier capitalized on brisk demand from Israelis traveling abroad during the peak summer and Jewish holiday season and on a market with little competition. Revenue rose more than 18 percent to $1.27 billion in the July to September period, up from $1.07 billion in the corresponding quarter last year, building on the airline's leading 38 percent share of passenger traffic at Tel Aviv's Ben Gurion Airport. Average revenue earned per seat increased about 7 percent from a year earlier.
Israel's local carriers, led by El Al, have remained the only airlines reliably flying in and out of the country during three years of wars, while foreign carriers have repeatedly suspended or delayed flights to and from Ben Gurion Airport amid heightened regional conflicts. That position has also drawn criticism, with local airlines accused of exploiting the fragile geopolitical situation to charge customers exorbitant fares.
El Al said passenger demand kept its planes 95 percent full on average, and seat capacity rose almost 9 percent year on year following an expansion of the fleet. Forward bookings based on advance payments from ticket and voucher sales reached a record $1.1 billion at the end of September, up 16 percent from the corresponding period last year.
The results arrived as financial turbulence engulfed smaller rival Arkia Israel Airlines. The country's third-largest airline, up for sale over the past year, has been burdened by heavy debt and reportedly faces losses of $50 million to $60 million in 2026, troubles that have triggered worker protests and prompted early takeover interest from local competitor Israir.
"El Al concludes the third quarter with operational performance at the upper end of the forecasts, despite a significant rise in input costs driven by fuel prices and exchange rate fluctuations, alongside further intensification of competition," said El Al CEO Levy Halevy. He said the results reflect steps taken to strengthen the company by increasing available seat kilometers and maintaining high load factors, producing one of the strongest periods in its history, and that the airline continues to see strong demand and a robust forward booking position in an environment still marked by uncertainty and rising fuel prices.
El Al shares have ballooned 589 percent over the past three years, gaining almost 20 percent this year and lifting the company's market capitalization to NIS 11.2 billion ($3.5 billion) ahead of its inclusion in the Tel Aviv-35 Index of blue-chip companies on Thursday. The airline also announced it will distribute a dividend of $116 million to shareholders.
Lior Vider, financial advisor and founder of investment consultancy Profit Multiplier, told The Times of Israel that the prolonged suspension of flights by many foreign airlines has left El Al the undisputed dominant carrier serving the Israeli market, and that even expanded capacity cannot offset the void left by carriers yet to fully return. "With scarce flight options, passengers traveling for business, family, or essential needs have very few alternatives, which is driving rigid demand," he said, helping El Al hold its load factor at an exceptional 95 percent and fueling persistent upward pressure on fares.
Despite the double-digit revenue growth, net profit fell almost 14 percent to $175 million, down from $203 million a year earlier, a decline the airline attributed largely to a one-off accounting charge, higher fuel prices and the negative impact of exchange rate fluctuations. Passenger loyalty provided an additional engine of growth: frequent flyer membership rose to 3.78 million, with 306,000 passengers joining by the end of September compared with the same period last year, and the number of FLY CARD credit cards issued increased 14 percent to 570,000.
Looking ahead, El Al projected seat capacity will increase 10 percent to 14 percent and revenue per available seat 1 percent to 4 percent in the October to December quarter. "As long as geopolitical tensions keep foreign competitors at bay, El Al will continue to command strong revenues and high fares," Vider said, adding that management's real test will come once the skies fully reopen to fierce international competition, when the airline must preserve market share, keep load factors above 90 percent and protect its bottom line against escalating operational costs.
