El Al Set to Enter Tel Aviv 35 Index Amid Stock Surge and Record Profits

El Al Israel Airlines, controlled by businessman Kenny Rozenberg, is set to enter the prestigious Tel Aviv 35 Index for the first time in its history following a dramatic stock surge. The company's inclusion, taking effect in November, reflects a paradox: while the Israeli aviation sector faces severe security threats, airspace closures, and flight cancellations, El Al has capitalized on its near-monopoly as foreign carriers delay their return.

Financial Surge and Market Dominance

The turning point came following a security incident on a Flydubai flight in late September, which raised serious concerns over foreign airline security and drove passengers toward Israeli carriers. El Al shares jumped roughly 13% over two days, pushing its market cap to approximately 11.5 billion shekels. This momentum builds on stellar financial results. In the second quarter of 2026, El Al reported revenues of $986 million, a 27% year-on-year increase, while net profit doubled to $132 million. Operating profit reached $139.6 million, and EBITDAR hit $222.2 million, despite an estimated $55 million impact from regional conflicts.

Regulatory Scrutiny and Public Image

Despite its financial triumph, El Al faces mounting regulatory and reputational challenges. In February, the Israel Competition Authority announced its intent to slap the airline with a 121 million shekel fine for allegedly charging excessive prices during the early months of the war, noting average ticket price hikes of 16% and up to 31% on certain routes. El Al rejected the claims, attributing increases to soaring fuel and insurance costs. As the carrier prepares to join the TA-35 Index, its ultimate test will be sustaining profitability and public trust once international competitors fully resume operations.