El Al's Q3 Revenue Hits $1.27 Billion

El Al generated $1.27 billion in revenue for the third quarter of 2026, a record high that represents an 18% increase over the same period last year. The Israeli flag carrier credited the surge to strong passenger demand and a market share of 38% at Ben Gurion Airport, where foreign competitors have largely stayed away due to regional conflicts. While revenue climbed, the airline's net profit fell by nearly 14% to $175 million, down from $203 million a year earlier.

The profit decline stems from higher fuel prices, exchange rate fluctuations, and a one-time accounting charge. Average revenue per seat rose by 7% compared to the previous year. El Al stated that its planes operated at a 95% load factor on average, while seat capacity expanded by almost 9% following fleet additions. Forward bookings reached a record $1.1 billion as of the end of September, marking a 16% year-over-year increase.

Financial pressure has mounted on smaller domestic rivals. Arkia Israel Airlines, the country's third-largest carrier, faces potential losses of $50 million to $60 million in 2026 amid heavy debt. The airline has been up for sale for a year, sparking worker protests and drawing early interest from local competitor Israir. This consolidation of the domestic market has left El Al with limited local opposition.

Levy Halevy, CEO of El Al, noted that operational performance remained at the upper end of forecasts despite rising input costs. He attributed the results to the company's strategy of increasing available seat kilometers and maintaining high load factors. Halevy described the forward booking position as robust, even as fuel prices continued to rise in an uncertain environment.

Lior Vider, founder of Profit Multiplier, argued that the ongoing security situation has effectively made El Al the dominant carrier in Israel. He explained that the absence of foreign airlines has created rigid demand, allowing El Al to maintain high occupancy rates and upward pressure on fares. Vider stated that passengers have few alternatives for business or essential travel, which sustains the airline's pricing power.

El Al's stock price has risen 589% over the past three years, adding nearly 20% this year. The company's market capitalization reached 11.2 billion NIS, or $3.5 billion, ahead of its inclusion in the Tel Aviv-35 Index on Thursday. The airline also announced a dividend of $116 million for shareholders. Frequent flyer program membership grew by 306,000 to 3.78 million, while FLY CARD credit card issuances increased 14% to 570,000.

For the fourth quarter, El Al projects a seat capacity increase of 10% to 14% and a revenue per available seat rise of 1% to 4%. The company expects these trends to continue as long as geopolitical tensions limit international competition. The airline's loyalty metrics and financial results suggest a sustained advantage in the current market conditions.