Israir Reports $32 Million Loss in H1 2026, Receives $4-8 Million Treasury Compensation

Israir Group announced its financial results for the second quarter and first half of 2026, reporting a loss of approximately $32 million for the first six months. The company described this period as one of its most challenging, citing factors such as the war in Iran, decreased demand, a sharp rise in fuel prices, the strengthening of the shekel against the dollar, and volatility in the euro-dollar exchange rate. Additionally, Israir incurred around $4 million in costs related to launching its wide-body aircraft fleet and starting operations on the New York route.

The company also disclosed it will receive compensation from the Israeli Ministry of Finance estimated between $4 million and $8 million. This compensation is conditional on airlines refraining from paying dividends in the coming year, effectively meaning Israir will not distribute dividends. Israir also spent about $500,000 establishing a partnership with the "Super-Play" credit card club, anticipating its share of the club's profits in 2026 to be between $3 million and $5 million.

In the first half of 2026, Israir's revenues totaled $249.5 million, down from $273 million in the second half of 2025, with a gross profit of $4 million compared to $20.2 million previously. Passenger numbers fell to 640,000 from 824,000 in the same period last year. For the third quarter, revenues reached $140 million, gross profit was about $1.4 million, and passenger count was 427,000.

Looking ahead, Israir expects improved performance in the second half of 2026, driven by the New York route launch, increased seat capacity on other routes, seasonal demand recovery, government support grants related to the war, and better subsidiary revenues, which stood at $78 million in the first half. The company aims for 3 million passengers and $1 billion in revenue in 2027.

The key upcoming event is the New York route launch. Israir has received an extended operating license from the Israeli Civil Aviation Authority and approval from the U.S. Department of Transportation to begin ticket sales to the U.S., expected to start next week. The company is finalizing documents to obtain the Federal Aviation Administration (FAA) operating permit.