An El Al plane. Photo: detaly.
Monopoly in times of war
Due to the withdrawal of foreign airlines from the Israeli market during the war, El Al has effectively gained the status of a monopolist in air transport. In the third quarter of 2024, the company earned a record $187 million in net profit, which is significantly higher than the $52 million in the same period last year. Total revenue during this time was $1 billion, up 44% from the third quarter of 2023, Time Ukraine Israel reports, citing Vesty.
Success factors
The growth of El-Al’s financial performance is due to several factors:
- Decreased competition. Due to the high risks, foreign carriers have reduced the number of flights or completely abandoned the Israeli route.
- Seasonal demand. The summer months were the peak travel period, when Israelis went on holiday abroad in large numbers.
- Record aircraft load factor. In the third quarter, El Al’s aircraft load factor reached 93.8%, up from 88.1% a year earlier.
These circumstances allowed the company to monopolise the most profitable destinations, such as flights to the UK and the US.
Empowerment and limitations
In the face of high demand, the company expanded its fleet, increasing the number of seats by 14%. This brought in an additional $48 million in revenue. At the same time, El Al’s management recognises that this is not enough to satisfy all passengers.
El Al CEO Dina Ben-Tal Ganansia emphasises:
“We have been operating in an emergency situation for over a year now, providing uninterrupted air travel between Israel and the world. Although we are limiting ticket prices, the demand exceeds our capacity.”
The company has set fixed fares for popular destinations such as flights to Larnaca, Athens, Vienna and Dubai, which has helped to ensure that aircraft are filled quickly.
Why Israelis choose El Al
In addition to its stability, El Al offers direct flights to many popular cities, which is a decisive factor for passengers. Foreign airlines that remain on the market often cannot provide this level of convenience.
Looking to the future
Despite its success, El Al faces challenges. Growing demand requires new investments in the fleet and management. At the same time, the company remains an important player in ensuring the country’s economic and diplomatic activity during the war.
