El Al Reports 103% Jump in Net Profit for Q2
Despite losses from Operation "Lion's Roar," El Al doubled its net profit to 125.9 million dollars, driven by strong demand and higher pricing. The airline expects this momentum to continue into the third quarter.
The airline El Al has reported a significant surge in revenue for the second quarter, totaling 986 million dollars—a 27% increase compared to the same period last year. The company recorded a net profit for shareholders of 125.9 million dollars, marking a 103% jump year-over-year.
These results were achieved despite losses incurred during Operation "Lion's Roar," which concluded early in the second quarter and resulted in a 55 million dollar loss over those 9 days. Excluding these operational impacts, the company would have recorded a net profit of approximately 190 million dollars for the quarter.
The primary impact of Operation "Lion's Roar" occurred in the first quarter, when El Al reported its first loss in three years, totaling 69 million dollars, with the operation itself accounting for 90 million dollars in losses.
El Al CEO Levi Halevi attributed the strong recovery to a rapid return to full operational capacity:
"Following the end of Operation 'Lion's Roar,' there was a gradual and rapid return to group activity, reaching full capacity by early May. Since then, we have seen a significant increase in demand for our flights."
Consequently, the company increased its seat supply by 9% compared to the previous year. Revenue per Available Seat Kilometer (RASK) rose by 12% to 11.56 cents, reflecting higher ticket prices. However, results were partially offset by rising jet fuel costs due to oil price volatility linked to tensions in Iran, as well as the strengthening of the shekel.
Third Quarter Outlook
El Al remains optimistic for the third quarter of 2026, noting that strong demand trends are continuing. The company estimates that Available Seat Kilometers (ASK) will grow by 6%–10% compared to last year, with RASK expected to rise by 4%–7%. Aircraft occupancy rates are projected to remain above 90%.
Advance bookings for future flights have reached 1.4 billion dollars, a 17% increase from the previous year. The frequent flyer club has grown by 270,000 members to reach 3.7 million, while the number of "Fly Card" holders has reached 514,000.
El Al currently has a market capitalization of 8.4 billion shekels. While the stock has declined by 10% year-to-date, it has seen a 400% increase over the last five years. The Rosenberg family, as owners, holds shares valued at over 3.5 billion shekels.
