Israeli flag-carrier El Al’s first-quarter financial performance has improved, even upon the unusually-high figures from last year, as strong demand for the airline’s flights persisted.
El Al says the demand continued to be “significantly higher” than the supply of seats it could offer – generating average load factors above 94%, even as it hiked capacity by 7%.
The airline has benefited from a reduction in competition following the suspension of a number of foreign airlines’ services to Israel since the outbreak of the Gaza conflict.
While passenger numbers at Tel Aviv’s Ben Gurion airport have increased by 63% compared with the first quarter last year, the level remains nearly 30% down on the same quarter in 2023, prior to the war.
El Al is claiming a 44% market share at Ben Gurion over the first quarter.
It has turned in a pre-tax profit of $120 million and net profit of $95.6 million for the three-month period, respectively up by $20 million and $15 million.
Overall revenues rose by nearly 5% to reach nearly $774 million, although cargo revenues slipped by 18.5% to $61.7 million.
El Al says the reduction in cargo activity is partly the result of the gradual return of foreign airlines.
But given the security situation, uncertainty is governing the pace at which foreign carriers are restoring capacity to Tel Aviv, and El Al says the seat supply of some competing airlines is “expected to be low” during the second quarter.
El Al has received another Boeing 787-9, taking its overall 787 fleet to 17 aircraft. It operated a fleet of 46 aircraft over the first quarter, including five 777-200ERs.
