War-Driven Travel Boosts El Al’s Profits Nearly Fivefold in 2024

El Al, Israel’s national airline, reported record-breaking profits in 2024, with net income soaring 4.7 times higher than the previous year. The company saw a 37% increase in revenue, reaching $3.4 billion, while earnings before interest, taxes, depreciation, amortization, and restructuring costs (EBITDAR) doubled compared to 2023.

The airline benefited from a massive surge in demand as foreign carriers suspended flights to Israel following the outbreak of the Israel-Hamas War. With limited alternatives, Israelis overwhelmingly turned to El Al, strengthening its market dominance.

El Al’s Market Expansion

• Fourth-quarter revenue jumped 26% to $851 million.

• Equity rose to $527 million by year-end, compared to a $209 million debt at the end of 2023.

• Seat availability increased by 12%, with a 94% load factor, up from 86% in 2023.

“The year 2024 presented us with complex national and business challenges, but we demonstrated our ability to successfully overcome them,” said El Al CEO Dina Ben Tal Ganancia.

Despite its success, El Al has faced criticism for rising ticket prices, with an average 14% increase per passenger. Some travelers accused the airline of price gouging, particularly after El Al launched marketing campaigns emphasizing its role in keeping Israel connected during the war.

To address public frustration, El Al capped prices on select flights, ensuring affordability for Israelis needing to travel.

As Israel’s primary international carrier, El Al remains a critical link between the country and the world. Despite the challenges, the airline has strengthened its financial position, proving its resilience in a time of crisis.

Israel continues to thrive even in times of adversity. Share this article or subscribe to our newsletter for more updates on Israel’s economic landscape.