El Al Israel Airlines, headed by Dina Ben Tal Ganancia, could not have dreamt of a better year. It posted record revenue and profits in 2024, thanks to its streamlining program, but even more so to the Swords of Iron war and the abandonment of Israel by most foreign airlines, allowing El Al to dominate the skies, certainly on the profitable US route.
El Al posted a net profit of $545 million for 2024, 4.7 times the profit in 2023. In the fourth quarter, the airline earned $130 million, less than in the third quarter — traditionally its strongest quarter — when net profit was $187 million, but still a big number.
Revenue in 2024 totaled $3.4 billion, 37% more than in 2023. Fourth quarter revenue was $851, 26% more than in the corresponding quarter.
EBITDAR (earnings before interest tax, depreciation, amortization, and rent or leasing costs) totaled $1.1 billion, double the figure for 2023. The company ended 2024 with shareholders' equity of $527 million, versus a deficit on shareholders' equity of $209 million at the end of 2023.
Cash flow rose to $1.4 billion from $453 million in 2023. Cash flow in the fourth quarter was $355 million, which compares with $172 million in the corresponding quarter of 2023.
Ambitious goal
Thanks to the strong results, and on the assumption that the global shortage in the manufacture and supply of new aircraft will continue into the coming years, El Al has upgraded its forecasts, setting a target of $4 billion revenue in 2030, a market share of 25% of passenger traffic at Ben-Gurion Airport (7.6 million passengers), and more than four million members of its Matmid frequent flyer club.
The company continues to reject the considerable public criticism of its fare hikes during the war, and claims that the average price rise per passenger (RRPK) in 2024 was 14%, and that this was because it set maximum prices for tourist class flights. Since mid-2024, El Al has operated flights to four destinations with reduced, fixed fares in tourist class: $199 to Larnaca; $299 to Athens; and $349 to Dubai, Vienna, and Frankfurt.
Nevertheless, the company admits that its average revenue per available seat kilometer (RASK) rose 24% in 2024 in comparison with 2023, thanks to high seat occupancy of 94%. Commenting on the previous quarter's results, Ben Tal Ganancia said jokingly that "94% and not 100% is apparently because we made a mistake somewhere in the count."
According to figures from Ben Gurion Airport, El Al flew no fewer than 47.5% of all passengers in 2024 (6.6 million people), up from 26.3% the previous year, a share that even then was boosted by the war.
El Al's share price has risen by more than 200% since the start of the war, and by more than 330% since the initial dip in the share price when the war broke out and the company issued a profit warning, before it realized what a bonanza the war would bring it.
El Al is as yet unable to distribute a dividend because of the restrictions in its agreements with the state, from which it received a bail-out during the Covid pandemic period, but it mentions in its financial statements that it has profits available for distribution of $654 million.
