El Al Reports Record Third Quarter Profits Amid Diversified Operations
Translated & summarized from Mako by baba
El Al, Israel's national airline, achieved record profits in the third quarter of 2026, earning $175 million on $1.27 billion in revenue. The company's diversified operations, including cargo, loyalty programs, and subsidiaries in food and maintenance, contributed to its financial success. Despite facing risks from security situations and fuel prices, El Al expanded its fleet and was included in the TA-35 index.
The story in 6 lines · by baba
- El Al reported record Q3 2026 profits of $175 million on $1.27 billion revenue.
- The airline's operations extend beyond flights to cargo, loyalty programs, and subsidiaries.
- Passenger flights revenue increased 16.7% in Q3 2026, with a 95% load factor.
- Cargo revenue rose 22.1% and loyalty program revenue surged 129.6% in Q3 2026.
- El Al faces risks from security, fuel prices, and foreign airline competition.
- The company's stock was added to the TA-35 index on November 5, 2026.
El Al, Israel's national airline, has reported record profits for the third quarter of 2026, with net income reaching approximately $175 million on revenues of $1.27 billion. This marks a significant turnaround from a loss of about $67 million in the first quarter, largely attributed to the "Protective Edge" operation and airspace closures.
Beyond passenger flights, El Al's operations include its subsidiary Sun Dor, cargo transport, a frequent flyer program, and the FLY CARD credit card. The company also has stakes in food production, aircraft maintenance, and tourism. This diversification strategy aims to reduce the airline's reliance solely on ticket sales.
In the third quarter of 2026, passenger flights generated $1.15 billion in revenue, a 16.7% increase year-over-year, with a load factor of around 95%. Cargo operations contributed $69.5 million, up 22.1%, and the loyalty program, including FLY CARD collaborations, saw a 129.6% revenue increase to $24.8 million.
El Al's subsidiaries also play a crucial role. Matam (Aircraft Food Industries) produces meals for airlines, and Borenstein Caterers Inc. is also involved in food production. The company also operates in duty-free sales, security services, and innovation through Cockpit Innovation. Revenue from external food sales grew by 27.9% and duty-free sales by 16.2% in Q3 2026.
The airline's stock was included in the TA-35 index on November 5, 2026, potentially increasing institutional demand. However, El Al faces ongoing risks including security situations, fuel prices, and competition from foreign airlines. The company has also expanded its fleet, finalizing an agreement with Boeing for additional 787 aircraft deliveries between 2029 and 2032.
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