(TEL AVIV) El Al Airlines is reporting strong 2025 profits as international carriers restore links to Tel Aviv after months of reduced service, a shift that is reshaping travel demand, fares, and capacity into Israel’s main gateway. The national carrier’s sharp financial turnaround has coincided with a steady return of foreign airlines to Ben Gurion Airport, resetting competition on routes that had seen limited options and high prices during the height of the regional crisis.
Financial turnaround and 2024–2025 performance
El Al closed 2024 with a record net profit of about $545 million, nearly five times the $117 million posted in 2023, after many foreign airlines paused Israel routes during conflicts. That led to strong demand for El Al seats and a dominant position on core corridors.
The airline built on that base in 2025. In the third quarter, El Al booked around $187 million in net profit on record revenue of $1 billion, with a load factor of 94%, up from 88% a year earlier—signaling fuller planes and solid pricing.
The year was not without setbacks. In the second quarter, El Al’s profit fell 55% to $66 million as the Iran war and airspace closures cut schedules and spiked costs. Still, the carrier stressed recovery drivers later in the year, reporting improving bookings and moving ahead with fleet expansion plans.
Financial repair has been notable as well: net financial debt fell from roughly $1.6 billion at the end of 2023 to about $75 million by the end of 2024, giving the airline more room to invest and adjust as competition returns.
Key figures at a glance
– 2023 net profit: $117 million
– 2024 net profit: $545 million (record)
– Q3 2025 net profit: ~$187 million
– Q3 2025 revenue: $1 billion (record)
– Q3 2025 load factor: 94%
– Net financial debt (end 2023 → end 2024): ~$1.6 billion → ~$75 million
Return of competing carriers and route restorations
Competition returned steadily through 2025, with major European and global groups resuming service:
- Lufthansa Group (Swiss, Austrian, Brussels Airlines, Lufthansa, Eurowings) resumed service from February 2025.
- Air India restarted flights on March 2, reconnecting large South Asian diaspora communities and business travelers.
- Delta Air Lines resumed on April 1, later adding capacity to New York (JFK) and planning Chicago and Washington routes for November 2025.
- British Airways restored service in late October and continued into November as demand picked up.
- Other carriers restarting or expanding flights during 2025 included Air France, ITA Airways, Wizz Air, Iberia, SAS, EasyJet, and Swiss International Air Lines (returned earlier than expected on September 25).
- In North America, Air Canada restarted the Toronto–Tel Aviv route on October 9, an important link for tourism and business between Canada 🇨🇦 and Israel.
Capacity trends, fares, and passenger impact
As foreign airlines returned, the number of weekly flights to Tel Aviv climbed significantly. Projections estimated more than 1,200 flights per week by mid‑May 2025, up from under 850 earlier in the year.
- More flights generally mean more seats and, over time, lower fares.
- During the months of limited competition, average ticket prices rose as travelers competed for fewer options.
- The broader schedule is expected to reduce price pressure, although peak travel periods and security costs will continue to influence pricing.
Practical effects for travelers:
– Israelis who delayed trips to see relatives abroad, international students returning to campus, and business travelers now have more choices.
– Many passengers are returning to their preferred frequent‑flyer programs and nonstop routes that reduce travel time.
– Restored service helps people with urgent needs—medical treatment, funerals, and family reunions—who struggled to find last‑minute seats during the scarcity period.
How carriers phased their returns
Industry observers note capacity returned in waves rather than all at once:
- Some carriers restarted with limited weekly flights, then added frequencies after demand stabilized and insurers approved operations.
- Others used a seasonal approach, focusing on peak periods and diaspora travel in late summer and autumn.
- Each incremental move affected the local market: when a large airline adds a daily frequency to a major hub, it can free seats on connecting routes and give smaller cities access via one‑stop itineraries.
Effects on airline profits and competition dynamics
El Al’s strong third quarter—marked by record revenue and a 94% load factor—captured pent‑up demand and group travel that delayed trips until clearer conditions returned.
- Foreign carriers returning later in 2025 may still see healthy yields as schedules settle and corporate travel policies loosen.
- If security and airspace conditions remain stable, analysts expect a more balanced split of traffic among El Al and competitors by year‑end.
- Fare competition is likely to be strongest on trunk routes such as Tel Aviv–New York, Tel Aviv–London, and Tel Aviv–Paris.
El Al now faces a market reset. Its debt reduction—from around $1.6 billion to about $75 million within a year—provides room to invest in aircraft, cabins, and schedules important to loyal customers. That cushion could help the airline defend high‑value routes even as seat supply increases across the market.
Airport operations and traveler experience
At Ben Gurion Airport, the return of flights has been noticeable:
- More departures mean longer lines at peak hours, but also more counters open and expanded baggage capacity.
- Families flying for holidays find more nonstop choices tailored to children and elderly relatives.
- Students and skilled workers benefit from reliable flights, reducing the risk of missed orientations, job start dates, or visa appointments.
Airline networks and immigration timelines often move together: when flights are stable, people can plan with greater confidence.
Travel documents and border rules
The broader picture also touches immigration and travel documents. With more flights operating, travelers should confirm entry rules early—especially those who faced cancellations or visa delays during the crisis.
- Israel’s Population and Immigration Authority maintains official updates on visas and entry policy; travelers can review current requirements on the government portal at the Israel Population and Immigration Authority page at https://www.gov.il/en/departments/general/visas_for_tourists.
While airlines sell seats, border rules determine who can board and enter. Consistent schedules help people complete consular steps, gather paperwork, and plan connections.
Outlook and what’s next for El Al
El Al’s leadership will need to balance protecting market share with keeping planes full as rivals return. The airline’s stronger balance sheet offers options to:
- Invest in fleet additions
- Upgrade cabin products
- Rebuild schedules that meet customer needs
For now, El Al’s strong 2025 profits demonstrate it capitalized on a difficult period. Its next test will be competing head‑to‑head with global carriers as the world reconnects with Tel Aviv.
This Article in a Nutshell
El Al recorded a dramatic recovery, posting a record $545 million net profit in 2024 and roughly $187 million in Q3 2025 on $1 billion revenue with a 94% load factor. Debt fell from about $1.6 billion to $75 million year‑over‑year, enabling fleet and service investments. International carriers gradually restored routes through 2025, increasing weekly flights to over 1,200 and easing fare pressure. El Al now faces renewed competition and must balance capacity, pricing, and market share as travel demand stabilizes.
