El Al posted a record-breaking net profit of roughly $545 million for 2024, almost five times higher than the previous year, with foreign airlines halting their services to Israel due to ongoing hostilities with Iran and its terror affiliates in Gaza, Lebanon, and Yemen, according to data released by the airline on Wednesday.
The prior record was approximately $116 million in 2023, bolstered by a strong fourth quarter, where competition diminished following the October 7 Hamas attack that sparked the Gaza conflict. During the final quarter of 2024, El Al earned a net profit of $130 million, a sharp increase from the $40 million seen in the same period the year before.
In 2024, the airline’s total revenue reached $3.4 billion, a 37% increase from 2023’s $2.5 billion, which was previously its highest ever. El Al’s financial performance also allowed it to reduce its net financial debt, dropping from $1.6 billion at the close of 2023 to just $75 million by the end of 2024.
The airline’s success was largely fueled by its dominant position in the North American market, where it claimed 97.5% of the market share. El Al’s planes were 96% full on average, contributing to its robust financial results. However, the airline’s supremacy may face challenges in 2025, as Israeli competitors Israir and Arkia are preparing to introduce their own North American routes and foreign carriers look to resume their services to Israel.
In response to criticisms of price increases, El Al’s CEO Dina Ben Tal Ganancia explained in a statement that the airline’s ticket prices rose by “just 14%” on average per passenger during 2024. She acknowledged the challenging year, stating, “The year confronted us with complex national and business challenges, but we’ve proven our ability to handle them successfully. Despite the challenges, we were able to maintain an aerial bridge between Israel and the world.”
Ticket prices soared in the wake of the October 7, 2023 massacre when Hamas terrorists attacked southern Israel, killing around 1,200 people and taking 251 hostages, triggering the ongoing conflict in Gaza.
Following the massacre, Hezbollah, another Iran-backed militant group, launched near-daily assaults on northern Israel, which later extended to central areas, including regions near Ben Gurion International Airport, Israel’s main hub near Tel Aviv. This caused further flight cancellations as Israel intensified its military operations in Lebanon. At the same time, the Houthi rebels in Yemen and Iranian-backed militias in Iraq also launched attacks against Israel. Iran itself carried out its first direct assault on Israel in April, and a second attack in October led to additional cancellations by foreign airlines.
With regional tensions beginning to ease and ceasefires with Hezbollah and Hamas in place, several major international airlines have announced they will resume flights to Ben Gurion Airport. United Airlines will restart its services to Israel on March 15, while Delta Air Lines is set to resume its Tel Aviv-New York route on April 1. American Airlines has not yet confirmed when it will return its service to Israel.
{Matzav.com}
It’s great for their union employees.