"Roar of the Lion" deepened Israir's losses - the forecast for the future is optimistic

The Israeli airline Israir, owned by businessman Rami Levy, presented its results for the second quarter of 2026 this morning, which were affected by flight cancellations during Operation "Roar of the Lion," the rise in jet fuel prices, and fluctuations in currency exchange rates. At the same time, the company continues to invest in expanding its operations ahead of the launch of the New York route and has set an ambitious target for 2027: more than 3 million passengers and revenues of about 1 billion dollars.

Israir deepened its loss in the first half of 2026, which stood at 35.5 million dollars, compared to a loss of 17.2 million dollars in the corresponding quarter, a jump of 89%. Revenues in the first half of 2026 decreased by about 8.6% and totaled 249.48 million dollars, compared to 273.13 million dollars in the same period last year. Accordingly, the company's gross profit margin plummeted from 7.4% to only 1.6%.

The operating loss, before other income, deepened to 26.38 million dollars, compared to an operating loss of about 6.65 million dollars in the corresponding half-year. The company's EBITDAR also shifted from a positive figure of 12.32 million dollars last year to a negative figure of about 6.78 million dollars in the first half of 2026. According to the company, the war alone reduced the first-half results by about 26 million dollars.

At the same time, expenses of about 4 million dollars were recorded as part of the preparations for operating wide-body aircraft and opening the New York route, and Israir invested about 500 thousand dollars in establishing the partnership in the "Super Fly" credit card club. Israir also notes that the company expects to receive compensation from the state for war damages. According to its estimate, the compensation approved under the Ministry of Finance's outline is expected to amount to 4-8 million dollars and be received in the coming months.

One of the central moves on which the company's growth plan relies is entering the American market. The company has completed the receipt of the expanded operating license from the Civil Aviation Authority, which allows it to operate wide-body aircraft in North America, Africa, and Asia. In addition, it received approval from the US Department of Transportation to market tickets to the United States and submitted the documents required for final operating approval to the FAA.

Israir currently operates 10 aircraft using its own crews, including two wide-body aircraft. In addition, it operates aircraft on short-term wet lease, with the number expected to reach 10 in September. The company estimates that the second half of the year will show an improvement in activity, among other things due to the start of operations on the New York route, the expansion of seat supply on existing destinations, seasonal recovery in demand and flight prices, receipt of state grants, and improvement in the activity of subsidiaries.

Also outside of traditional aviation, Israir is trying to expand its sources of income. The activity of Ski Deal, in which Israir holds 51%, although it was affected in the last winter season due to the war, according to the company, it shows an order backlog indicating potential for a record year in 2027. This is after Ski Deal announced in March 2026 a dividend distribution of 10 million shekels, of which Israir received about 5.1 million shekels (about 1.6 million dollars). In May, Ski Deal announced an additional dividend of about 6 million shekels (about 2 million dollars), of which Israir's share amounted to about 3.1 million shekels (about 1 million dollars).