El Al Israel Airlines 4Q net income $46.2M, -64% YoY

El Al Israel Airlines 4Q net income $46.2M, -64% YoY

El Al Israel Airlines Reports Q2 2025 Net Income Decline Amid Operational Disruptions

El Al Israel Airlines (TASE:ELAL) reported a 55% year-over-year decline in net income for the second quarter of 2025, falling to $66 million. This followed a 7% drop in revenues to $777 million, despite a 14% increase in operational activity during the period. The airline attributed the decline to the closure of Israeli airspace between June 13 and 25, which significantly disrupted its operations.

The company’s EBITDAR for Q2 2025 stood at $179 million, reflecting resilience in cost management despite the challenges. CFO Yancale Shahar noted that full operations resumed in July, with a planned 8% increase in available seat kilometers (ASK) compared to July 2024. Looking ahead, El Al expects a 19% rise in seat capacity for Q3 2025 versus the same period in 2023, while foreign carriers are projected to reduce supply by 64%.

As of June 30, 2025, El Al maintained $1.9 billion in liquidity, $1.4 billion in financial debt, and $789 million in equity. The airline’s load factor averaged 92.5% during the quarter, underscoring strong demand despite operational constraints.

While the recent earnings highlight short-term challenges, the company’s long-term performance remains notable. Over the past three years, El Al delivered a total shareholder return of 361.68%, outpacing the broader airlines industry’s 15.1% growth. However, its current share price of ₪15.55 remains significantly below the estimated fair value of ₪123.45, suggesting potential undervaluation.

The airline’s recovery trajectory appears supported by its strategic capacity adjustments and improved market conditions, though ongoing geopolitical risks and competitive dynamics could influence future performance. Investors are advised to monitor the company’s Q3 guidance and broader industry trends for further clarity.

(https://finance.yahoo.com/news/el-al-israel-airlines-tase-183012788.html): Yahoo Finance, August 28, 2025.
(https://www.aviationnews-online.com/public/article/el-al-israel-airlines-profits-dip-in-second-quarter): Aviation News Online, June 2025.