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Introduction & Market Context
El Al Israel Airlines presented its Q2 2025 investor presentation on August 28, 2025, revealing how the company navigated significant challenges from the war with Iran while positioning itself for recovery and growth. The airline’s stock (TASE:ELAL) has shown resilience, trading at 1464 ILS, up 2.32% and near its 52-week high of 1590 ILS, despite the substantial operational disruptions during the quarter.
Quarterly Performance Highlights
El Al reported a significant decline in financial performance for Q2 2025 compared to the same period last year, primarily due to the impact of the war with Iran. Total revenues fell 7% to $777 million, while net profit plummeted 55% to $66 million. The company explicitly attributed a $100 million negative impact on profit to war-related damages, including direct damages, loss of revenue, and passenger compensation.
As shown in the following detailed breakdown of Q2 performance metrics:
The operational indicators reveal the scale of disruption, with Available Seat Kilometers (ASK) decreasing by 3% to 6,838 million. Revenue per Available Seat Kilometer (RASK) declined 2% to ¢10.86, while the company maintained a strong load factor of 92.5%. EBITDAR fell 36% to $179 million, and profit before tax decreased 54% to $88 million.
Recovery Trajectory
Despite the challenging quarter, El Al demonstrated remarkable resilience in its recovery. Passenger traffic data at Ben Gurion Airport shows significant volatility, with May 2025 recording a 58% increase in passengers compared to 2024, followed by a 39% decrease in July as the conflict intensified.
The following chart illustrates this passenger traffic pattern:
By April and May 2025, El Al had already returned to full operational capacity, operating approximately 115 daily flights and serving around 21,000 passengers daily. This rapid restoration of service highlights the airline’s operational agility.
The recovery to full capacity is visualized in this operational data:
Booking trends for the latter half of 2025 show particularly encouraging signs of recovery. The June-August period demonstrates a quick rebound following the war with Iran, with net sales for July-August 2025 showing a 52% increase compared to the same period in 2024 (42%).
The following chart illustrates this booking momentum for the critical summer travel period:
Competitive Industry Position
El Al has significantly strengthened its market position during this period of global uncertainty. While foreign airlines reduced their capacity by 64% in Q3 2025 compared to Q3 2023, El Al increased its Available Seat Kilometers by 18.5% during the same period. This divergence has allowed El Al to capture substantial market share in its home market.
The presentation notes that from 2023 to the end of 2025, ASK in the global aviation industry is expected to increase by 13% (excluding the Far East), positioning El Al’s growth ahead of the broader market recovery.
Strategic Initiatives
El Al continues to execute on multiple strategic fronts to strengthen its competitive position and financial resilience. The company has expanded its customer loyalty base with an additional 139,000 frequent flyer program members (bringing the total to 3.4 million) and 34,000 more FlyCard credit card holders (now 481,000 total). The company reported that 55% of purchases during H1 2024 came from frequent flyer program members.
Fleet expansion remains a priority, with the addition of two passenger aircraft (bringing the total to 47), four ACMI (Aircraft, Crew, Maintenance, and Insurance) arrangements, and two cargo aircraft. The company has also acquired two additional Boeing 737 aircraft scheduled to enter operation in 2026, indicating confidence in continued growth.
The comprehensive strategy is detailed in this overview:
Financial Stability
Despite the war’s impact on quarterly results, El Al has continued to strengthen its financial position. Available funds increased by $443 million to $1.887 billion, while net debt decreased by $571 million to $(496) million. Equity grew by $261 million to $789 million, reflecting the company’s improved financial health.
The following chart illustrates El Al’s improving financial stability:
Forward-Looking Statements
El Al’s booking trends suggest a strong recovery for the second half of 2025. The company’s strategic positioning as the dominant carrier at Ben Gurion Airport, combined with reduced competition from foreign airlines, creates favorable conditions for continued market share gains.
The fleet expansion plans, including the acquisition of additional Boeing 737 aircraft for 2026 delivery, signal management’s confidence in sustained long-term growth despite the temporary setback from the war with Iran.
While the presentation highlights the company’s resilience and recovery, investors should note that the $100 million impact from the war with Iran represents a significant one-time event that substantially affected Q2 2025 results. The company’s ability to quickly restore operations and capture market share from retreating competitors demonstrates operational agility that may position El Al for stronger performance in coming quarters, assuming regional geopolitical conditions stabilize.
Full presentation:
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