El Al Soars to New Heights with Record Profits and Revenue in Q3

El Al, Israel's flagship airline, has announced outstanding financial results for the third quarter of 2024, reporting a record net profit of $187 million, marking a staggering 258% increase compared to the $52 million profit in the same period last year. This impressive growth follows a strong performance in the second quarter, where El Al also set a new record with a net profit of $147 million.

The airline's success is largely attributed to the summer vacation period, where many Israelis traveled abroad, and the fact that foreign airlines are largely avoiding flights to Israel due to ongoing security concerns. This situation has allowed El Al to dominate profitable routes, particularly to the United States and the United Kingdom. In fact, the company reached an impressive 93.8% seat occupancy in the third quarter, compared to just 88.1% during the same period in 2023.

El Al's revenue also hit a record high, reaching $1 billion, up from $695 million in Q3 2023. The airline's ability to accommodate more passengers contributed significantly to its financial success, with a 14% increase in seat supply made possible by leasing additional aircraft. The higher seat occupancy and the growth in capacity added $48 million to the company's profits.

El Al CEO Dina Ben Tal Gnansia addressed the challenges the airline continues to face in a global aviation market plagued by a shortage of planes and pilots. "We are operating in emergency mode," she said, emphasizing the importance of maintaining air connections between Israel and the rest of the world. With foreign airlines still hesitant to return to Israeli airspace, El Al is managing increased passenger demand by working to expand seat availability while controlling ticket prices.

Ben Tal Gnansia also noted that the company is implementing strict price policies, including setting ceiling prices for round-trip tickets and fixed prices for specific destinations like Larnaca, Vienna, Athens, and Dubai. These measures are intended to create booking convenience for passengers while attempting to maintain flexibility in ticket cancellation.

Despite the challenges, including the global shortage of planes and pilots, El Al’s performance remains strong. "The market will continue to experience challenges, but we are focused on ensuring the continuity of essential air travel services for Israel," said Ben Tal Gnansia.