Israeli flag-carrier El Al has repaid a state loan of $45 million advanced to the carrier as part of a financial support package.

The airline, which had indicated in September that it would be repaying the loan two years ahead of schedule, says the transaction was completed on 2 November.

This repayment was agreed in a new framework pact with the Israeli government.

The pact postponed the deadline for a $62 million share issue to April next year, after which the company will be allowed to transfer an equivalent sum, or more, from profit realised during the sale of its loyalty programme.

El Al has committed not to make a dividend distribution until the end of 2025, and any distribution for the three years covering 2026-28 will not exceed 30% of net profit.

Under the agreement, the government will also ease some of the conditions for major transactions below a certain threshold.

But El Al’s commitment prohibiting sale or encumbrance of airport slots, without prior government approval, will remain in effect until the end of 2030.

El Al 787-c-El Al

Source: El Al