Despite a year of war, El Al, Israel’s national carrier, posted a record net profit of $545 million in 2024, marking a 4.7-fold increase from 2023, according to the airline’s financial report released on Wednesday. Revenues surged 37% to $3.4 billion, driven in part by a 14% rise in average ticket prices.
“The year 2024 presented us with complex national and business challenges, but we have proven our ability to successfully deal with them,” said Dina Ben Tal Ganancia, El Al’s CEO. “Despite the challenges, we managed to maintain the air bridge between Israel and the world during a period of multi-sector war, while continuing to implement the strategic plan.”
El Al was the only airline offering direct flights between Israel and the US, as most international carriers suspended service during the war.
Revenues for the fourth quarter alone amounted to around $851 million, a 26% increase from the previous year’s $678 million. Net profit in the fourth quarter also saw significant growth, jumping to $130 million from $40 million during the same period in 2023.
El Al’s market share saw growth across multiple sectors. In 2024, its market share at Ben Gurion Airport reached 47.5%, more than doubling from the previous year’s 26.5%. In the fourth quarter, this figure increased further to 52%. The airline’s market share on US routes also reached new heights, soaring to 90% for the year, up from 42% in 2023. In the fourth quarter, this figure set a new record of 97.5%. This dominance on routes to the US played a key role in the company’s profitability.
Despite these impressive financial results, El Al has yet to announce any dividend distribution. The airline is still negotiating with the Israeli government to lift the restrictions on dividend payouts, which were put in place as part of the aid package during the COVID-19 crisis. The Ministry of Finance’s decision to reduce its funding of airline security means that El Al will bear an additional burden of up to $10 million per year. In exchange, the company is seeking to remove the ban on dividend distributions, which is set to last until the end of 2025.
According to El Al’s financial report, the airline’s net debt fell sharply from $1.4 billion in 2023 to just $75 million in 2024. Its equity at the end of 2024 stood at approximately $527 million, a significant turnaround from an equity deficit of around $209 million in the previous year. This improvement was driven by the company’s robust net profit, capital raising efforts totaling around $135 million, and the exercise of warrants worth $58 million.
Additionally, El Al repaid all debt to the state for COVID-19-related assistance during 2023.
In the cargo sector, El Al saw a significant increase in revenue, which rose by $100 million to reach $267 million for the year, compared to $165 million in 2023. This increase in cargo revenue further bolstered the airline’s overall financial health.
The company also benefitted from a decrease in net financing expenses, which fell to approximately $47 million in 2024, compared to the previous year. In the fourth quarter, financing expenses decreased to $28 million from $44 million, primarily due to higher interest income from deposits.
“We will continue to adhere to the implementation of the strategic plan, which we are updating and extending today, in order to bring El Al to global success in all areas of tourism and aviation, with an emphasis on the European and American markets,” said Ganancia. “We welcome the return of foreign companies and continue to establish El Al’s position as a strong and leading Israeli airline, contributing to the country’s economy and society in Israel.”
