Israeli airline El Al doubled its second-quarter net profit as the carrier recovered from disruptions caused by fighting between Israel and Iran, benefiting from stronger demand and a near-monopoly position as foreign airlines largely remained absent.
Israel’s flag carrier reported net profit of $132 million, up from $66 million a year earlier. Revenue rose to $986 million from $777 million. El Al shares jumped 15% following the earnings release.
The airline said the conflict with Iran reduced second-quarter results by $55 million. The broader disruption, including higher jet fuel costs and operational restrictions, was offset by the recovery in flight activity and stronger revenue.
El Al returned to full operations in May after commercial flights were diminished during the conflict.
The absence of foreign competition continued to support its results, as many international carriers, particularly U.S. airlines, delayed resuming flights to Tel Aviv, giving the airline a near-monopoly position similar to the advantage it gained during the Gaza conflict.
El Al’s share of traffic at Ben Gurion Airport rose to 50.2% in the second quarter from 39.6% a year earlier. On U.S. routes, one of its most profitable markets, the airline’s market share increased to 92.3% from 75.7%.
The shift in market share helped drive a 25% increase in revenue on North American routes to $398 million. The average revenue per passenger kilometer rose 15.4% to 12.84 cents compared with the same period last year.
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“We are entering the second half of the year from a position of financial strength, with a solid balance sheet and high liquidity,” Chief Financial Officer Gil Feldman said. “Based on current business trends, our order backlog and continued strong demand, we expect continued growth,” he added.
El Al reported an order backlog of $1.4 billion based on advance bookings and plans to increase seat capacity by up to 10% in the third quarter. The airline has added two Boeing 737 aircraft to its short-haul fleet and returned older Boeing 777 aircraft to service.