'Israel’s' El Al profit plunges 55% as war on Iran grounds flights
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El Al reports steep revenue and operating profit declines in Q2 2025, citing a two-week airspace closure and reduced flight capacity during the war on Iran.
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Israeli flag carrier El Al's airliner takes off at Ben Gurion Airport, near Tel Aviv, occupied Palestine, Monday, Aug. 31, 2020 (AP)
"Israel's" El Al Airline saw its profit tumble 55% in the second quarter, dropping to $65.9 million from $147.4 million in the same period last year, as the war on Iran disrupted operations in June.
The Israeli airspace was closed for two weeks, leading to a 40% reduction in the airline's flights. El Al estimates that the war on Iran cost the company $100 million in profits. Without the war, the second-quarter results would have likely mirrored last year’s performance.
In April and May, the airline had reported a 14% increase in passengers compared with the same months in 2024, highlighting strong pre-war demand.
“Due to the closure of the airspace at Ben Gurion airport and the halt of the group’s regular flight services following the operation, available seat kilometers (ASK)… in June 2025 was roughly 40% lower than in the same month last year, and in the quarter there was a decrease in ASK… by 2.7% compared with the corresponding quarter last year," El Al said.
Recovery expected in third quarter
Since July, El Al has seen signs of renewed, though modest, activity. “Near the date of approval of the report, the group experienced a recovery process that began shortly after the resumption of scheduled flight operations at Ben Gurion Airport, which is reflected in increased demand for the Group’s flights and high occupancy rates,” the airline said.
The company expects this trend to continue through the second half of 2025, forecasting a 3.1% increase in seat supply for the third quarter compared with last year.
It is worth noting that El Al has not yet named a successor to CEO Dina Ben Tal-Gnancia, who recently announced her resignation.
The airline’s revenue in Q2 fell 7% to $777 million, while operating profit (EBITDAR) plunged 36% to $179 million. Cash flow from operating activities also dropped 11%, to $351 million.
