El Al profits soar as airline thrives amid regional challenges
March 13, 2025
While foreign carriers suspended their Israel routes, El Al Israel Airlines, which continued to operate flights to and from the region, has reported a nearly five-fold surge in net profit reaching a record $545 million in 2024, up from $117 million in 2023.
Soaring profits
The airline’s annual revenue soared to approximately $3.4 billion, a 37% increase from the previous year, driven by strong demand and a lack of competition from other carriers. In Q4 alone, El Al earned a net profit of $130 million. The airline also achieved a 94% load factor (+9% vs. 2023 levels) and a 24% rise in revenue per available seat, while expanding flight frequencies to North America, Europe and Asia, while operations on other routes paused.
Additionally, El Al significantly reduced its net financial debt from $1.6 billion at the end of 2023 to just $75 million by the close of 2024.
Amid accusations of price-gouging, El Al’s CEO Dina Ben Tal Genancia acknowledged a 14% increase in average fares compared to 2023, as she emphasised El Al’s efforts to maintain an air bridge between Israel and the world during a period of war.
Challenging year
In total El Al flew 6.6 million passengers last year, up 19% from 2023 with Genancia saying that despite the multiple challenges the airline proved its ability to successfully deal with them. “We operated throughout the war with a strict pricing policy, while setting maximum prices and fixing uniform prices for a number of destinations.”
These actions, she said, “have proven successful” and the goal now is to “continue to maintain financial stability and bring about growth for the company in all areas.”
Looking ahead, El Al is investing in its fleet with orders for three Boeing 787 Dreamliners and 20 Boeing 737 MAX aircraft confirmed last year. Deliveries are due to start in 2028.
Increasing competition in 2025
However, the airline is expected to face increasing competition in 2025 as geopolitical tensions ease. Ceasefires with Hezbollah and Hamas have prompted several international carriers, to resume flights to Tel Aviv’s Ben Gurion Airport, where El Al has nearly doubled its market share to 48%. United Airlines is set to resume services to Israel in the coming days, with Delta Airlines following in April, while Israeli rivals Israir and Arkia plan to launch North American routes in due course.
