El Al: Record quarterly revenue hits $1.27 billion

El Al reported its highest quarterly revenue in company history for the third quarter of 2026. The Israeli airline generated $1.27 billion from July through September, a figure that marks an 18 percent increase from the $1.07 billion recorded in the same period last year. This financial milestone coincides with the carrier holding a 38 percent share of passenger traffic at Ben Gurion Airport in Tel Aviv.

Three primary factors drove the financial results. First, demand from travelers during the peak summer and Jewish holiday seasons remained strong. Second, average revenue per seat climbed approximately 7 percent compared to the previous year. Third, El Al expanded its fleet, which increased seat capacity by nearly 9 percent year over year. These steps allowed the airline to maintain an average load factor of 95 percent.

Forward bookings also set a new benchmark. Advance payments from ticket and voucher sales reached $1.1 billion at the end of September. This total represents a 16 percent increase over the corresponding period in the prior year. El Al CEO Levy Halevy stated that the company concluded the quarter with operational performance at the upper end of forecasts. He noted that the results reflect increased available seat kilometers and high load factors despite rising fuel costs and exchange rate fluctuations.

The strong performance arrived as smaller competitors faced financial strain. Arkia Israel Airlines, the country's third largest carrier, is reportedly facing losses between $50 million and $60 million in 2026. The airline has been up for sale for the past year and faces debt burdens that have triggered worker protests. Local competitor Israir has shown interest in an early takeover of Arkia.

Market conditions favor El Al because foreign carriers have frequently suspended or delayed flights to Israel during three years of regional conflicts. Lior Vider, founder of investment consultancy Profit Multiplier, explained that the scarcity of flight options creates rigid demand. He noted that passengers traveling for business or essential needs have few alternatives, which keeps fares high. Vider added that even expanded capacity cannot fully offset the void left by international carriers that have not returned to the market.

Despite record revenue, El Al's net profit decreased by nearly 14 percent to $175 million. The decline stems from a one-off accounting charge, higher fuel prices, and exchange rate impacts. The airline continues to grow its loyalty program, with frequent flyer membership reaching 3.78 million. The number of FLY CARD credit cards issued rose 14 percent to 570,000. El Al announced it will distribute a $116 million dividend to shareholders and will be added to the Tel Aviv-35 Index of blue-chip companies on Thursday.

For the fourth quarter, El Al projects seat capacity will rise between 10 percent and 14 percent. The airline expects revenue per available seat to increase between 1 percent and 4 percent. Shares have gained almost 20 percent this year, lifting the company's market capitalization to NIS 11.2 billion, or $3.5 billion.