El Al reports record profits as foreign airlines delay return to Israel

Israel's national carrier El Al reported record second-quarter profits as strong summer travel demand and limited competition from foreign airlines continued to drive ticket sales despite the ongoing regional security situation.

“We concluded the second quarter with strong results, despite having only two months of full operations due to Operation Roaring Lion,” said El Al CEO Levy Halevy. “During the quarter, we experienced strong demand for El Al flights, as reflected in record sales and forward bookings.”

Most major international airlines have postponed plans to fully resume service to and from Israel's Ben Gurion International Airport as they continue to monitor the potential for renewed conflict with Iran.

With relatively few competitors operating flights, El Al has captured nearly half the Israeli market while airfares remain significantly higher than in previous years.

El Al posted a net profit of $132 million in the April-June quarter, up from $66 million during the same period in 2025. The results came despite higher jet fuel costs and the appreciation of the shekel against the U.S. dollar and euro.

“The demand is so large that El Al and their competitors can charge outrageous prices that we have not seen ever,” Mark Feldman, CEO of Ziontours Jerusalem, told The Times of Israel. “The problem is that just finding seats is the main challenge, and once the average Israeli finds that available seat, he or she will pay almost any price.”

“The threat of war is what’s allowing local carriers as well as competitors to raise ticket prices, which are higher by 10-15% from last year,” Feldman said.

“These high prices are the norm and will not come down until there is much more competition from major foreign airlines, including US airlines, Air Canada, British Airways and Iberia,” he explained.

The Lufthansa Group is among the few major Western European carriers to cautiously resume flights to and from Israel in recent weeks, despite the absence of Iranian ballistic missile or drone attacks since the April 8 ceasefire.

Several Persian Gulf carriers and Eastern European budget airlines have also resumed limited service, while Israel's domestic airlines Arkia and Israir have expanded shuttle flights to Athens and other nearby European hubs, allowing travelers to connect with larger international carriers.

“El Al is the only major player in the game offering non-stop flights from Tel Aviv to New York,” said Feldman. “Tens of thousands of Israelis fly to New York via Dubai or Abu Dhabi or Athens and yet El Al’s planes on the route remain nearly sold out.”

The airline's strong financial performance has also fueled criticism that it is taking advantage of limited competition to charge exceptionally high fares while many Israelis continue to face economic hardship.

El Al has rejected those accusations, saying it continues to operate under wartime conditions while assuming risks that many foreign airlines are unwilling to take. Company officials argue that without those operations, Israeli travelers would have few options for international travel.

“We enter the second half of the year from a strong financial position, supported by a solid balance sheet and high liquidity,” said El Al Chief Financial Officer Gil Feldman. “Based on current operating trends, our forward-booking balance and continued strong demand, we expect further growth.”