El Al net profits decline despite increased passenger traffic, record third-quarter revenue
El Al also reported continued growth in its customer loyalty programs, with its frequent flyer club reaching 3.78 million members, up about 306,000 from the previous year.
Israeli airline El Al reported a decline in net profit despite increased passenger traffic and record third-quarter revenue for 2026. The results come as the flag carrier joins the TA-35 Index, tracking the 35 largest companies on the Tel Aviv Stock Exchange. El Al's net profit fell to $175 million, roughly 14% less than $203 million in the same period last year.
However, revenue surged 18% to $1.27 billion, driven by heightened activity. Factors contributing to the profit decline included higher fuel prices and exchange rate fluctuations, which added about $135 million to expenses compared to the third quarter of 2025. Despite these costs, earnings before interest, taxes, depreciation, and aircraft leasing expenses rose 3% to $367 million, aided by a 7% increase in revenue per available seat kilometer.
El Al's available seat kilometers, a measure of passenger capacity adjusted for flight distance, increased approximately 9% following fleet expansion. The airline maintained an average passenger load factor of about 95%, indicating only one in 20 seats remained empty on average. Advance bookings remained robust, with El Al's order backlog at $1.1 billion as of September, up 16% from the same period last year.
The airline's frequent flyer club and credit card usage also grew. El Al CEO Levy Halevy attributed the performance to employees' professionalism and dedication. Investors reacted negatively to the results on Thursday, with shares falling about 5% following a 3.7% decline on Wednesday. El Al shares have risen around 45% over the past six months, despite sharp fluctuations.
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
