Cigna earnings beat by $0.04, revenue topped estimates
Introduction & Market Context
El Al Israel Airlines (TASE:ELAL) reported strong financial results for the first quarter of 2025, achieving significant profit growth despite ongoing regional security challenges. The Israeli flag carrier presented its Q1 2025 results on May 21, showing how it has maintained operational resilience while foreign airlines gradually resumed services at Ben Gurion Airport following earlier disruptions.
The airline’s stock has recently experienced a 5.8% decline to 1380, though it remains near its 52-week high of 1444 and substantially above its 52-week low of 399.7.
Quarterly Performance Highlights
El Al delivered impressive financial results for Q1 2025, with total revenues reaching $774 million, representing a 5% increase compared to the same period last year. Net profit surged 19% to $96 million, while EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) grew 9% to $213 million.
As shown in the following quarterly results overview, the airline also improved key operational indicators, including a 7% increase in Available Seat Kilometers (ASK) to 6,742 million and a 2 percentage point improvement in load factor to 94%:
The airline’s cost control measures have been effective, with Cost per Available Seat Kilometer (CASK) decreasing by 2% to ¢9.62, helping to offset a slight 2% decline in Revenue per Revenue Passenger Kilometer (RRPK) to ¢11.06.
Market Position and Competitive Landscape
El Al has capitalized on the gradual return of foreign airlines to Ben Gurion Airport during Q1 2025. According to the presentation, some international carriers resumed operations but at partial capacity, while others abandoned their time slots entirely.
This passenger traffic chart illustrates the recovery trend at Ben Gurion Airport, with Q1 2025 showing 3,584,000 passengers, a substantial 63% increase compared to Q1 2024, though still below pre-disruption levels:
El Al has leveraged this situation to strengthen its market position, carrying 1,581,000 passengers in Q1 2025, a 16% increase over Q1 2024. The airline achieved remarkable market share, particularly in January 2025 when it carried 73% of all passengers at Ben Gurion Airport.
The following chart demonstrates how El Al has maintained full operational capacity amid fluctuating overall passenger traffic:
Financial Resilience and Debt Reduction
El Al has significantly strengthened its financial position over recent years, continuing this trend in Q1 2025. The airline reported $1.675 billion in available funds, a substantial $951 million increase, while reducing gross debt by $326 million.
The company’s strategic initiatives have also shown positive results, with 300,000 new members joining its frequent flyer program (now totaling 3.3 million), a 56% booking rate (up from 47% in Q1 2024), and 78,000 additional FlyCard credit card holders.
As shown in the following chart, El Al has transformed its financial structure since 2021, moving from a net debt position of $2.044 billion to a net cash position of $230 million as of March 31, 2025:
The improvement in Net Debt/EBITDA ratio from 5.6 in December 2022 to less than zero currently reflects the airline’s enhanced financial stability. This transformation included $135 million raised via public offering and $58 million from option exercises.
Forward-Looking Statements and Challenges
Despite strong Q1 results, El Al faces renewed challenges from regional security concerns. The presentation specifically referenced a May 4, 2025 security event that has impacted passenger traffic forecasts, with airlines postponing approximately 17% of Ben Gurion Airport activity.
As illustrated in this forecast comparison, passenger traffic expectations have been revised downward following the security incident:
Looking ahead, El Al outlined several strategic initiatives, including fleet expansion with the arrival of a new Dreamliner (#17), plans to return a sixth 777 aircraft to service, and the purchase of three previously leased 737 aircraft along with a leased 737 engine.
The airline’s continued implementation of its growth strategy focuses on enhancing customer loyalty, expanding partnerships, and maintaining financial resilience, as detailed in this strategic overview:
El Al’s presentation demonstrates how the airline has successfully navigated a complex operating environment to deliver strong financial results while building resilience against ongoing regional challenges. However, investors should note that renewed security concerns could impact the airline’s performance in upcoming quarters.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.