El Al and Bezeq Report Record Profits Despite Regional Conflict and Economic Challenges

El Al Airlines and Bezeq, two major Israeli companies, have reported record-breaking profits for the second quarter of 2026, defying challenges such as the ongoing conflict with Iran, rising fuel costs, and a weakening dollar. El Al doubled its net profit to $132 million and achieved a historic $1.4 billion in order backlog. The airline also plans to increase seat capacity by 6% to 10% in the third quarter and saw its frequent flyer club membership grow by 270,000 to 3.7 million, with FlyCard holders rising by 33,000 to 514,000.

Bezeq, Israel's telecommunications giant, exceeded analyst expectations with a 38% increase in net profit, reaching $315 million. Its revenues rose by 1.4% to 2.17 billion shekels. The company announced a dividend distribution of 515 million shekels to shareholders, including 415 million shekels in cash dividends and an additional 100 million shekels allocated for share buybacks. Bezeq's chairman, Tomer Rabed, highlighted the strong financial performance amid economic pressures.

These results illustrate the significant market power held by these monopolistic companies in Israel, enabling them to maintain profitability despite external economic and geopolitical pressures. The companies' strong financial health and strategic expansions suggest continued growth in the coming quarters.