El Al posts record $1.27B revenue as Q3 net profit falls 14%

By Grace Kim

Record third-quarter revenue of $1.269 billion, up 18%, could not prevent El Al's net profit from falling 14% to $174.8 million from $202.6 million.

The airline, owned by businessman Kenny Rozenberg, paired that sales gain with a 9% capacity increase and an approximately 95% load factor. Higher fuel and finance costs, alongside a one-time accounting effect, offset stronger operating performance.

El Al generated $160.6 million in operating cash flow, held a record $1.1 billion order backlog and announced a dividend of about $116 million. Those figures support fourth-quarter growth, but fuel prices, returning foreign competition and security uncertainty could still absorb the benefit.

What drove the earnings decline?

El Al said fuel prices and exchange-rate fluctuations added approximately $135 million to expenses, yet EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring) rose about 3% to $367.3 million from $356.8 million. That operating gain did not reach net profit.

Pre-tax profit fell roughly 12% to $233.1 million. Net finance costs swung to $10.5 million from $4.3 million of net finance income a year earlier. El Al also cited a one-time negative revaluation of its share-linked 'phantom option' and weaker financial income.

Takeaway: Financing and one-off accounting effects offset stronger operations and left the bottom line lower.

How much did capacity and demand contribute?

Available seat kilometers (ASK), the airline's capacity measure, rose 9% through fleet expansion and preparations for the summer season.

Load factor, the percentage of available seats filled by passengers, remained broadly unchanged at approximately 95%. Revenue per available seat kilometer (RASK), a measure of revenue relative to capacity, rose about 7%.

Takeaway: Strong demand and a larger network helped El Al fill nearly all available seats and lift revenue.

How strong are cash generation and loyalty economics?

Operating cash flow rose about 27% to $160.6 million from $127 million. At September's end, El Al held about $2 billion in liquid resources and $1.12 billion of gross financial debt, producing a net liquidity surplus of roughly $910 million.

The frequent-flyer program remained a growth engine: membership reached 3.78 million, up about 9% from September last year, while FLY CARD issuance rose 14% to 570,000 cards. El Al said accumulation under its new Isracard agreement was progressing faster than expected.

The company expects that partnership to add an average of NIS 100 million to NIS 130 million (New Israeli shekels) a year to pre-tax profit.

Takeaway: Strong cash flow gives El Al room to fund growth, while loyalty growth supports future revenue.

How large is the order backlog?

The order backlog reached a record $1.1 billion at the quarter's end, up 16% from a year earlier. Around 53% of recent ticket sales were for future flights.

Converting that backlog into revenue depends on normal operations at Ben Gurion Airport, the security situation and foreign carriers' return to Israel.

Takeaway: Booked demand supports future revenue, but airport, security and competition conditions determine how quickly it converts.

What did the Flydubai disruption change?

An attempted hijacking of a Flydubai aircraft in late September reportedly led Flydubai to suspend flights to Israel. That shift strengthened El Al's position on the route to Dubai.

El Al's shares rose about 13% over two days after the episode, helping boost market capitalization ahead of the company's inclusion in the TA-35 Index.

Takeaway: The disruption created a short-term route advantage, but management expects foreign competition to intensify.

What is the fourth-quarter outlook?

El Al forecasts available seat kilometers to increase by 10% to 14% in the fourth quarter. It projects RASK growth of 1% to 4% and load factors of at least 90%.

Those targets come amid higher fuel costs, intensifying competition as foreign airlines resume flights to Israel and continued security uncertainty.

Takeaway: The forecast assumes more capacity and modest revenue gains while cost and security risks remain unresolved.

Why did nine-month profit remain below last year?

Net profit for the first nine months fell to $240 million from $364 million in the comparable period. El Al said Operation Roaring Lion reduced its results by approximately $145 million, compared with a $77 million impact from Operation Rising Lion in the corresponding 2025 period.

Takeaway: The larger reported impact kept nine-month profit well below last year despite the stronger third quarter.

How large is the dividend?

El Al's dividend amounts to 62 agorot per share, or approximately $116 million in total, and the airline cited its results and financial position when announcing it.

The record date is November 12, 2026, and El Al schedules payment for November 19. Shareholders must hold the stock on the relevant record date to qualify for the distribution.

Takeaway: The dividend is a $116 million cash commitment made after a quarter of stronger operating cash flow.

Record revenue, cash generation and bookings provide a base for growth, but profit recovery depends on fuel, finance, returning competition and security staying manageable.