Israeli airline El Al has reported record profits amid rising tensions in the Middle East, with competitors leaving the country fearful of a possible war between Israel, Iran and Hezbollah in Lebanon.
The Tel Aviv-based airline reported a profit of $80 million for the first quarter, compared with a loss of over $34 million in the first three months of 2023.
El Al CEO Dina Ben Tal Ganancia has attributed the airline’s dramatic turnaround to the ongoing “instability” of the region’s aviation industry, saying El Al had benefited from competitors ceasing flights to Israel.
Ganancia says El Al would normally expect low demand during the winter months, but the lack of competition means the airline is struggling to increase its seat capacity to meet demand.
Normally, El Al would record a passenger load factor (a measure of how many seats are filled per flight) of just 85% in the first three months of the year, but between January and February 2024, the passenger load factor reached a “remarkable” 93%.
In the following months, some airlines resumed operations in Israel, but with tensions rising again, foreign airlines again restricted their operations in Israel.
On Sunday, it was reported that American Airlines had decided to postpone its planned return to Tel Aviv until April 2025, while Delta and United Airlines also continued to suspend their flights to Israel amid fears that Iran could launch a retaliatory missile attack on the country.
Several European airlines, including Lufthansa and its partner airlines, have suspended their flights until at least August 26, while low-cost carrier EasyJet has extended the suspension of flights to Tel Aviv until March 2025.
Although the conflict had a positive impact on El Al’s finances, Ganancia criticized foreign airlines for abandoning Israeli travelers and called on their competitors to resume flights to Israel as soon as possible.
“I am convinced that they are committed to the Israeli public and, given the long period they have stayed away from Israel, it will take a courageous and correct decision by the airlines’ management teams to immediately resume flights,” Ganancia commented.
“This situation is creating a real crisis among Israeli consumers who have ordered tickets from these companies and who, in many cases, are left in the lurch and only turn to El Al at the last minute,” Ganancia added.
El Al, which means “Upward” or “To the Sky” in Hebrew, faced potential disaster during the COVID-19 pandemic when travel restrictions placed a heavy burden on the airline’s finances.
In a controversial deal, a majority stake in the airline was acquired by a company run by the 27-year-old son of an Israeli businessman who made his fortune with a chain of nursing homes in the United States.
In recent years, El Al has struggled to attract budget-conscious travelers who have ignored the airline’s patriotic marketing campaigns and instead favored low-cost carriers that have flooded into Tel Aviv to meet rising demand.
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