El Al Posts Record Revenue as Profits and Shares Fall

El Al reported record third-quarter revenue of $1.27 billion, up 18%, even as net profit fell about 14% to $175 million. The Israeli flag carrier attributed the decline primarily to a one-time expense from revaluing a phantom option, while higher fuel prices and exchange-rate fluctuations added about $135 million to expenses compared with the third quarter of 2025.

Record Sales, Lower Profit

Passenger traffic increased and demand for flights remained strong. El Al’s earnings before interest, taxes, depreciation and aircraft leasing expenses rose about 3% to $367 million. Revenue per available seat kilometer, a measure tied to passenger capacity and distance flown, increased 7%.

The company said the phantom-option revaluation accounted for an approximately $24 million difference between the two quarters. That compensation item stood alongside the higher operating costs in the report: more revenue did not prevent a lower net-profit figure.

Available seat kilometers rose about 9% after El Al expanded its fleet. The average passenger load factor held at about 95%, largely unchanged from the same quarter a year earlier. That left an average of one in every 20 seats empty.

The order backlog reached about $1.1 billion at the end of September, up 16% from the same period a year earlier. It includes advance payments for tickets and vouchers. El Al also reported 3.78 million frequent flyer club members, about 306,000 more than a year earlier, and about 561,000 FlyCard credit cards as of the report’s publication.

Employees, Capacity and the Dividend

CEO Levy Halevy credited employees for the results. “The achievements we are presenting today would not have been possible without the professionalism and dedication of El Al's employees,” he said. “Their work on the ground and in the air forms the foundation of our ability to expand our operations and provide our customers with quality service.”

Halevy also pointed to expanded seat capacity and high occupancy rates, while citing rising fuel prices and uncertainty. He described the company’s inclusion in the TA-35 Index as an expression of its “resilience and standing.” The index tracks 35 of the largest companies listed on the Tel Aviv Stock Exchange.

El Al announced a dividend distribution of about $116 million, its second this year. The report places that payment alongside the record revenue, the falling net profit and the higher expenses; it gives no further breakdown of how the dividend relates to the company’s costs or employee compensation.

Market Applause Turns Uneasy

El Al has faced criticism in Israel over high ticket prices and praise for maintaining flights during wartime. Those contrasting reactions sit beside the company’s own account of strong demand, expanded capacity and high occupancy. The report does not provide ticket-price figures or detail how its wartime operations affected revenue.

Investors reacted negatively to the results. El Al shares fell about 5% in Thursday morning trading after declining 3.7% on Wednesday. On August 5, when the airline released its previous quarterly results, shares surged about 15%; between that day’s close and Wednesday, the stock gained another 17%. Overall, shares rose about 45% over the past six months, amid sharp price fluctuations.

The figures show a company navigating strong demand and a larger fleet while facing higher fuel and currency-related expenses. They also show the split between the airline’s reported performance and the market’s immediate response: record revenue, a second dividend this year, and a falling share price after the latest results.