After two very strong years, El Al Israel Airlines Ltd. (TASE:ELAL) was brought back down to earth by the Iran war in June when Israel’s airspace was closed for two weeks and the number of flights was cut by 40%. As a result El Al’s second quarter profit was $65.9 million, down 55% from $147.4 million in the corresponding quarter of 2024.
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El Al estimates that the operation against Iran cut profit by $100 million and that but for the war the second quarter results would have been similar to the corresponding quarter last year. In April and May, El Al reported that there was a 14% rise in the number of passengers compared with the corresponding period of 2024.
El Al said, “Due to the closure of the airspace at Ben Gurion airport and the halt of the group’s regular flight services following the operation, available seat kilometers (ASK), which measures an airline’s passenger-carrying capacity, in June 2025 was roughly 40% lower than in the same month last year, and in the quarter there was a decrease in ASK for the quarter that the group offered by 2.7% compared with the corresponding quarter last year.”
El Al estimates seat supply will increase 3.1% in third quarter
Since the start of July, El Al has been reporting renewed, albeit slight, growth in activity. The airline said, “Near the date of approval of the report, the group experienced a recovery process that began shortly after the resumption of scheduled flight operations at Ben Gurion Airport, which is reflected in increased demand for the Group’s flights and high occupancy rates. The company estimates that this trend will continue over the second half of 2025, and in particular in the third quarter of the year”. El Al estimates that in the third quarter seat supply will increase by 3.1% compared with the corresponding quarter last year.
The company has not yet announced who will replace CEO Dina Ben Tal-Gnancia, after she recently announced that she is stepping down.
El Al’s revenue in the second quarter fell by 7% to $777 million, the company’s operating profit (EBITDAR) plunged by 36% to $179 million, and El Al’s cash flow from operating activities also shrank to $351 million, down 11%.
Published by Globes, Israel business news – en.globes.co.il – on August 28, 2025.
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