El Al Reports Record Third Quarter Profit Amid Diversified Operations
Translated & summarized from N12 by baba
El Al, Israel's national airline, achieved a record third-quarter profit of $175 million on $1.27 billion in revenue for 2026, recovering from a first-quarter loss. The company's diversified operations include cargo, loyalty programs, and subsidiaries in catering and maintenance, reducing dependence on ticket sales. El Al's stock was added to the TA-35 index, and the airline is expanding its fleet with new Boeing 787 aircraft.
The story in 5 lines · by baba
- El Al reported a record Q3 2026 profit of $175 million on $1.27 billion revenue.
- The airline's profitability is significantly impacted by security situations and fuel prices.
- El Al's operations extend beyond flights to include cargo, loyalty programs, and maintenance.
- The company's stock was added to the TA-35 index on November 5, 2026.
- El Al is expanding its fleet with new Boeing 787 aircraft for delivery between 2029-2032.
El Al, Israel's national airline, has reported a record third quarter profit of approximately $175 million on revenues of $1.27 billion for 2026. This marks a significant turnaround from a first-quarter loss of about $67 million, largely attributed to the "Protective Edge" military operation and airspace closures. The airline's profitability is heavily influenced by security situations, fuel prices, and foreign competition.
Beyond passenger flights, El Al operates Sun Dor for charter and special flights, cargo transport, a frequent flyer program, and the FLY CARD credit card. The company also has subsidiaries involved in in-flight catering, aircraft maintenance, tourism, duty-free sales, and aviation security. This diversification strategy aims to reduce reliance solely on ticket sales.
In the third quarter of 2026, passenger flights generated $1.15 billion, a 16.7% increase year-over-year, with a 95% occupancy rate. Cargo operations brought in $69.5 million, up 22.1%, and the FLY CARD loyalty program saw a 129.6% revenue increase to $24.8 million due to new partnerships.
El Al's financial performance is sensitive to external factors. The "Protective Edge" operation in early 2026 cost the company an estimated $145 million. The airline anticipates rising fuel prices and increased competition in the fourth quarter, warning that any security escalation could further impact its forecasts.
In a significant development, El Al was added to the TA-35 index on November 5, 2026, which is expected to increase institutional demand for its stock. The company also announced a dividend of approximately $116 million in November 2026. El Al has also expanded its fleet, exercising options for six additional Boeing 787-9 aircraft and converting four to the larger 787-10 model, with deliveries scheduled between 2029 and 2032.
