Israeli flag-carrier El Al has acknowledged the increasing return of foreign airlines to Tel Aviv over the third quarter, following the cessation of Gaza hostilities, but points out that they are still operating at “relatively low” volumes.
El Al adds that this return is remaining “gradual” during the fourth quarter, and that the trend of high demand for its own flights will continue, “although at a reduced intensity” compared with the same period last year.
The airline recorded a passenger load factor of 95.3% for the third quarter.
It says the increased foreign activity reduced the contribution of cargo to the carrier’s profits, and its operating profitability for the quarter dipped slightly.
But El Al’s pre-tax profit nevertheless increased by nearly 8% to $265 million, while net profit also rose by a similar level to just under $203 million.
It attributes this to improvements in financing, resulting from better liquidity plus lower debt burdens and interest expense from loans.
The total seat supply at Tel Aviv in the third quarter was still 25% lower than that of the same quarter in pre-pandemic 2019.
El Al expects this difference to close to 10% during the fourth quarter, adding that the level in the final quarter last year was 51% lower than in 2019.
Over the first nine months of the year, pre-tax profit and net profit each declined by about 12%, to $473 million and $364 million respectively.
