El Al Israel Airlines Ltd. (TASE:ELAL), managed by CEO Dina Ben-Tal Ganancia was among companies “benefiting” from the long war due to the huge profits it recorded as one of the only airlines continuing to fly to Ben Gurion airport. But the latest escalation with Iran has effectively hermetically closed Israel’s skies, which could lead to an unknown period of sharp decline in the company’s revenue.
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Thus, El Al’s share price is currently down about 3.5%, while earlier in trading today it was down more than 6%, with a market cap of NIS 7.2 billion. In the past year, the stock has jumped by 230%. Shares of smaller Israeli carrier Israir Group (TASE: ISRAG), managed by Uri Sirkis, are down about 1.5%, after rising by more than 70% in the past year. The market cap of Israir, controlled by Rami Levy, is NIS 610 million.
Civil Aviation Authority director general Shmuel Zakay told “Globes” over the weekend that the operation to repatriate tens of thousands of Israelis stranded abroad will take weeks, and he promised that “everyone will return home, it’s just a matter of time.” It also became clear from the interview with Zakay that the aircraft fleets of both Israel and foreign airlines was not at Ben Gurion Airport when the campaign began – with advanced and secret planning.
On the TASE, investors were less receptive to the message emerging from discussions that Ben Gurion airport may be closed for a considerable period, possibly several weeks. Even if foreign airlines delay their return to Israel, El Al is already operating at full capacity and will not really be able to fly more Israelis and profit from the situation.
Published by Globes, Israel business news – en.globes.co.il – on June 15, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
