El Al Doubles Profit Amid Iran Conflict Despite Security Operation Losses

El Al Airlines reported a strong financial quarter with net profits doubling to approximately $132 million, compared to $66 million in the same period last year. The company's revenues grew by 27%, reaching about $986 million, driven by a rapid recovery in demand following the end of the "Roaring Lion" military operation against Iran. However, the operation itself caused a direct loss of around $55 million during the quarter.

The airline's operating cash profit (EBITDAR) stood at roughly $222 million, achieved despite rising fuel costs and fluctuations in the dollar exchange rate. El Al attributed part of its improved results to the partial return of foreign airlines to Ben Gurion Airport, which had been limited during the conflict. Israeli airlines currently hold about 70% of passenger traffic at the airport, up from nearly 100% during the peak of hostilities in March when foreign carriers largely ceased operations.

In the first quarter, during the height of the conflict, El Al posted a net loss of approximately $67 million, compared to a profit of $96 million in the same period last year. For the first half of the year, net profit declined to $65.4 million from $161.5 million in the previous year. The reduced supply of flights, especially by foreign carriers, has kept ticket prices to popular destinations such as the United States significantly higher than pre-conflict levels.

Looking ahead, El Al reported a record backlog of bookings totaling about $1.4 billion and expects to increase seat capacity by 6% to 10% in the third quarter compared to last year. The company continues to navigate the challenges posed by regional security tensions while capitalizing on recovering travel demand.