El Al Reports Record Revenue, Announces Dividend Amid Market Gains
Translated & summarized from Arutz Sheva by baba
El Al reported record third-quarter revenues of $1.27 billion, an 18% increase, and a record booking backlog of $1.1 billion. Despite a 14% drop in net profit to $175 million due to one-time charges, the airline announced a $116 million dividend and its inclusion in the TA-35 index. The company's operational performance and cash flow improved, driven by fleet expansion and high occupancy rates.
The story in 6 lines · by baba
- El Al achieved record quarterly revenues of $1.27 billion, an 18% year-over-year increase.
- The airline announced a dividend payout of $116 million to shareholders.
- El Al's backlog of future flight bookings reached a record $1.1 billion.
- Net profit decreased by 14% to $175 million due to a one-time accounting charge.
- The company's operational performance metric, EBITDAR, increased by 3%.
- El Al was added to the TA-35 index of leading Tel Aviv Stock Exchange companies.
El Al has concluded the third quarter with record-breaking revenues of approximately $1.27 billion, an 18% increase compared to the same period last year. This surge in income, despite rising fuel costs and exchange rate fluctuations, was driven by an expansion of the company's fleet and a 9% increase in available seats. The airline maintained a high occupancy rate of around 95% and saw a 7% rise in revenue per available seat kilometer, indicating successful operational growth.
Despite the revenue increase, El Al's net profit for the quarter saw a decrease of about 14%, falling to $175 million from $203 million in the prior year's third quarter. The company attributed this decline primarily to a one-time accounting charge related to the revaluation of a phantom stock option, which accounted for a $24 million difference. However, the company's operational performance, measured by EBITDAR, improved by 3% to $367 million, even with increased expenses from fuel and currency changes totaling $135 million.
The airline also reported a significant improvement in its cash flow from operations, which rose by 27% to $161 million. Furthermore, El Al's backlog of future flight bookings reached a record $1.1 billion, a 16% increase year-over-year, signaling continued strong demand. The company's equity also grew to $1.3 billion by the end of September 2026, with liquid assets of $2 billion exceeding its gross financial debt of $1.12 billion.
In light of these strong financial results, El Al announced its second dividend distribution of the year, totaling approximately $116 million for its shareholders. The company also celebrated its inclusion in the TA-35 index, which comprises the largest market-cap companies on the Tel Aviv Stock Exchange. The loyalty program, FLY CARD, also saw substantial growth, with 3.78 million members and 561,000 credit cards issued.
CEO Levi Hlevi expressed satisfaction with the results, highlighting the company's ability to exceed forecasts despite increased operational costs and heightened competition. He emphasized the expansion of operations and high occupancy rates as key factors. CFO Gil Feldman underscored the company's strong operational profitability and financial stability, which enable continued investment and shareholder returns while adhering to a strategic plan with financial discipline.
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