El Al Israel Airlines Ltd. (TASE:ELAL) has reported net profit of $203 million in the third quarter of 2025, up 8% from $187 million in the corresponding quarter of 2024 and a new record.
The higher profit was achieved despite the return of foreign airlines to Ben Gurion airport and the reduction of El Al’s market share in passenger traffic, with the decline in market share expected to continue. There are now about 60 airlines operating at Ben Gurion airport, compared with only 20 in November 2024, and El Al’s market share has fallen to about 35.9%. However, the reason for the improvement in results is that in absolute terms, El Al flew more passengers in the third quarter than in the second quarter (an increase of 6%-10% in each of the months of the third quarter).
Control of routes to North America continued, but is declining
El Al’s decline in share is reflected both in passenger traffic in Europe (down to 34% from 38%) and in the Middle East (down to 6% from 7%) and even in flights to North America (down to 72% from 86%); Despite this, El Al still holds almost three-quarters of transatlantic flights (to North America), where fares continued to climb in the third quarter, greatly helping the company’s profitability. In addition, El Al’s share of routes to East Asia rose to 73% compared with 71% last year).
El Al’s revenue also continued to climb in the third quarter to $1.07 billion, up 7% from the corresponding quarter of 2024. However, the company’s operating profit (EBITDAR) remained flat, at $357 million, similar to last year.
El Al also reports that airfares continued to rise on average in the last quarter, so that revenue per weighted seat kilometer (RASK) rose 4.2% from the corresponding quarter, “As a result of an increase in the rate of return per passenger kilometer (RRPK) by 2.6% and an increase in the occupancy rate.”
El Al already has a net cash surplus of $534 million, and, on the one hand, a financial debt of $1.3 billion, but on the other hand, cash of over $1.8 billion.
The third quarter produced a strong and satisfying financial performance for outgoing CEO Dina Ben Tal Ganancia, who is now being succeeded by Levy Halevy, until recently CEO of credit card company ICC-CAL.
Ben Tal Ganancia said, “The third quarter of 2025 was also affected by a changing security reality, in which we experienced high demand for the company’s flights, with limited supply at Ben Gurion Airport combined with the high seasonal demand trend of the summer and holiday season.”
The outlook for the fourth quarter is positive
El Al forecasts that the fourth quarter of 2025 will also be strong, albeit slightly less so. “In the company’s assessment, the return of foreign companies in the fourth quarter of 2025 is gradual, and therefore the trend of high demand for the group’s flights and high occupancy rates relative to seasonality will continue, although with reduced intensity relative to the trend that prevailed in the fourth quarter of 2024.”
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El Al controlling shareholder Kenny Rozenberg and his son Eli, hold 45.4% of the company’s shares worth NIS 3.9 billion, through their company Kanfei Nesharim Aviation. El Al’s stock has jumped 94% since the beginning of the year to a market cap of NIS 8.5 billion. In the last three years, El Al’s stock has risen 388%.
Published by Globes, Israel business news – en.globes.co.il – on November 11, 2025.
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