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Israel's El Al Airlines profit climbs, foreign carriers resuming Tel Aviv flights

El Al Israel Airlines reported a 8% increase in its quarterly profit on Tuesday. The airline continued to reap the benefits of foreign airlines delaying flights to Israel because of the Gaza War, but it said that it expects more to return next year.

Some foreign carriers resumed their flights in August, while others announced that they would resume flights to Israel following a ceasefire agreement brokered by the United States between Israel and Palestinian militant Hamas last month in Gaza.

El Al CEO Dina Bental Ganancia stated that "we see a trend of recovery at Ben Gurion Airport starting in the fourth quarter with the return to foreign airlines. We estimate this will continue slowly throughout 2026."

Israel's flag-carrier said Tuesday that it had earned $203 millions in the third quarter. This is up from $187million a year ago. Revenue increased 7% to $1.075 billion. In Tel Aviv, its shares rose 3.4% during the afternoon.

Ben Tal Ganancia stated that the quarter was affected by the security conditions, as demand for El Al flights increased during the summer months while few foreign aircraft were flying out of Ben Gurion Airport in Tel Aviv.

Many foreign airlines halted their flights to Tel Aviv after the Hamas militants attacked Israel on October 7, 2023. El Al was one of only a few airlines that flew to and from Israel during most of the last two years.

This led to El Al's net profit doubling in 2024. Some customers complained that the airline took advantage of the conflict to increase airfares.

Ben Tal Ganancia stated that El Al's strong position in terms of finances and liquidity will anchor future growth.

According to Israel Airport Authority data, Ben Gurion's passenger traffic rose by 65% from October 2024 to October, and El Al's share of the market fell to 31%, down from 50%.

El Al increased its seat capacity by a quarter's end with the addition a Boeing 787 Dreamliner, and the return of an older Boeing 787 to service. Load factor, or the percentage of seats that are filled, increased to 95.3% in comparison with 93.9% one year earlier.

Ben Tal Ganancia is stepping down at the beginning of 2026, and Levy Halevy will replace him. (Reporting and editing by Steven Scheer)

(source: Reuters)