El Al Competes for Spot in Top Israeli Stock Index After Security Scare
Translated & summarized from Globes by baba
The story in 5 lines · by baba
- El Al is vying for a spot in the Tel Aviv 35 Index after a stock surge.
- A security incident on a Flydubai flight boosted investor confidence in El Al.
- The airline reported a 103% net profit increase in the second quarter of 2026.
- Three companies are expected to be removed from the TA 35 index.
- El Al competes with Doral, Energyix, and Fattal for index inclusion.
El Al Israel Airlines is a serious contender to join the Tel Aviv 35 Index in the upcoming rebalancing, following a significant surge in its stock price. The airline's shares jumped 13% over two days, reaching a market value exceeding 11.4 billion shekels. This rise is partly attributed to a security incident on a Flydubai flight, which has led investors to favor Israeli airlines like El Al, perceived as safer due to Israeli security measures. This event has reignited concerns about flying with foreign carriers, particularly those operating from regional countries.
Previously not considered for the index, El Al's market capitalization now places it as the 35th largest company on the Tel Aviv Stock Exchange. If it secures a spot, it would be a historic first for the airline, which joined the TA 125 and TA 90 indices in 2024. The current index review period, which determines inclusions and exclusions, concludes on October 15th.
To be included in the TA 35, El Al must meet two conditions: sufficient companies must exit the index from the lower ranks, and El Al must maintain a high enough market position. Currently, three companies are expected to be removed: real estate firm Demri, food retailer Shufersal, and holding company Cannon. However, due to Palo Alto Networks' rapid inclusion in August, only one net share will be added to the TA 35, unless one of the exiting companies re-enters the top 40. This leaves room for two, or potentially one, new entrant.
El Al is competing for a spot against renewable energy firms Doral and Energyix, and hotel company Fattal. El Al's chances are strong, especially if it can surpass Doral, from which it is currently separated by only 33 million shekels in market value. The airline's strong financial performance, including a 103% increase in net profit to $126 million in the second quarter of 2026 and revenues of approximately $986 million, bolsters its position. Load factors remained high at 94%, and the company holds a significant market share, particularly on transatlantic routes.
Read the original at Globes