El Al Releases Strong Financial Reports for Q1 2025: Net Profit of $96 Million
El Al continues its trend of business improvement, publishing its results for the first quarter of 2025 with significant increases in revenue and net profit.
Growth in Profitability and Demand Levels
The company’s revenue for the quarter amounted to approximately $774 million, marking an increase of about 5% compared to the first quarter of 2024. The net profit soared to approximately $96 million, a growth of about 19% compared to the same period last year.
The EBITDAR index (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) stood at $213 million, an increase of approximately 9% compared to the corresponding quarter.
Significant Financial Strengthening
As of March 31, 2025, the company’s equity reached $685 million, compared to $527 million at the end of 2024. The company reports a gross financial debt of $1.444 billion, against an exceptionally high cash balance of $1.675 billion – indicating a shift to negative net financial debt.
Decrease in Market Share, Yet High Demand
Despite a decrease in market share to 44% (compared to 62% in the first quarter of 2024), following the return of foreign airlines to operations at Ben Gurion Airport, the demand for El Al flights remained very high. The company continued to operate routes with relatively high capacity, while making commercial and operational adjustments.
Impact of Launches from Yemen on Aviation Activity
The beginning of the second quarter was directly affected by the security situation: a missile launch towards Israel led to cancellations and delays by foreign airlines, which again increased reliance on El Al. The company responded quickly, launching a price cap policy valid until June 21, 2025, and set fixed prices for destinations such as Larnaca ($199) and Athens ($299) for round-trip tickets.
Forecast for the Rest of the Year
The company estimates that even in the second quarter of 2025, demand will exceed supply at Ben Gurion Airport, and the expectation is for continued operations at high occupancy rates. The Revenue per Available Seat Kilometer (RASK) index is expected to be similar to the corresponding quarter last year.
Management Remarks
Dina Ben-Tal Ganancia, CEO of El Al:
“We conclude another quarter of growth and improvement in profitability. We continued to operate routes under capacity constraints and made adjustments to allow for increased supply. We are implementing the strategic plan – expanding the aircraft fleet and purchasing planes that were previously leased. There was also an increase in club members and long-term bookings. Additionally, we signed new agreements with TAROM and Azerbaijan Airlines.”
Yankele Shachar, CFO of El Al:
“The combination of strong demand, wet leases, and reduced fuel costs contributed to a sharp increase in revenue and profitability. This quarter, we moved to negative net financial debt – a step that significantly strengthens our ability to grow and continue implementing the long-term strategy.”
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