Israir Reports Deepened Losses in H1 2026 Amid 'Roar of the Lion' Operation, Eyes Growth with New York Route
Israir, the Israeli airline owned by businessman Rami Levy, announced its financial results for the second quarter of 2026, revealing a significant increase in losses influenced by flight cancellations during the "Roar of the Lion" military operation, rising jet fuel prices, and currency fluctuations. The company reported a net loss of $35.5 million in the first half of 2026, nearly doubling the $17.2 million loss from the same period last year. Revenues fell by 8.6% to $249.48 million, and the gross profit margin dropped sharply from 7.4% to 1.6%. Operating loss before other income widened to $26.38 million from $6.65 million, and EBITDAR shifted from a positive $12.32 million to a negative $6.78 million.
Israir attributed approximately $26 million of the half-year loss directly to the war, alongside $4 million in expenses related to preparing for wide-body aircraft operations and launching the New York route. The company also invested $500,000 in establishing a partnership with the "Super Fly" credit card club. It expects to receive government compensation for war damages estimated between $4 million and $8 million in the coming months. Excluding these exceptional impacts, Israir stated that operational and gross profitability results were significantly better.
A key element of Israir's growth strategy is its entry into the U.S. market. The airline secured an expanded operating license from the Civil Aviation Authority, allowing it to operate wide-body aircraft in North America, Africa, and Asia. It also obtained U.S. Department of Transportation approval to market tickets to the United States and submitted required documents to the FAA for final operational approval. Currently, Israir operates 10 aircraft, including two wide-body planes, and plans to increase leased aircraft to 10 by September.
The company anticipates improved performance in the second half of 2026, driven by the New York route launch, expanded seat capacity on existing routes, seasonal demand recovery, government grants, and better subsidiary operations. Outside traditional aviation, Israir is expanding revenue streams through its 51% stake in Ski Deal, which suffered last winter due to the war but shows strong booking momentum for a record year in 2027. Ski Deal declared dividends of 10 million shekels in March and 6 million shekels in May, from which Israir received approximately $2.6 million in total.
Israir aims for over 3 million passengers and nearly $1 billion in revenue in 2027, reflecting its ambitious growth plans despite recent challenges.
