Israel’s flag carrier, El Al, had a record-breaking year in 2024, ending the year with profits 4.7 times higher than in 2023, a 37% growth in revenue, and earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) two times as high as in 2023.
The increase in price per passenger was 14% on average, the company said, compared to 2023. It’s important to note that El Al’s market share spiked soon after the outbreak of the war, likely impacting average prices in 2023, so it may not be the most appropriate year for comparison.
Demand for El Al tickets has surged as foreign airlines canceled flights to Israel due to the Israel-Hamas War, leaving El Al with near-monopoly status. Many Israelis were reluctant to book with other airlines even if tickets were available, fearing foreign carriers would cancel flights if the security situation changed.
This has led to a significant amount of criticism as ticket prices increased.
The increase in price per passenger was 14% on average, the company said, compared to 2023. It’s important to note that El Al’s market share spiked soon after the outbreak of the war, likely impacting average prices in 2023, so it is not the most appropriate year for comparison.
The company’s revenue stood at $3.4 billion in 2024, with fourth-quarter revenue of $851 million, 26% higher than in the fourth quarter of 2023. Its equity stood at $527 m. as of December 31, 2024, compared to a debt of $209 m. as of the last day of 2023. This was because of the profit brought in by the company as well as fundraising and realized warrants.
El Al’s net debt was $75 m. as of the last day of 2024.
Facing massive demand, the company worked to increase the number of flights and seats available to Israelis, and the airline’s available seat per kilometer (ASK) increased by 12% in 2024 compared to 2023.
Revenue per available seat-kilometer (RASK) also increased by 24% when comparing 2024 to 2023, the airline said, saying that this is because of the load factor which was 94% in 2024 compared to 86% in 2023, and because of the increased revenue per passenger kilometer.
“The year 2024 presented us with complex national and business challenges, but we demonstrated our ability to successfully overcome them. Despite these challenges, we managed to maintain the air bridge between Israel and the world during a multi-front war while continuing to implement the strategic plan,” said El Al CEO Dina Ben Tal Ganancia.
Criticism of the airline
Critics have accused El Al of price gouging, as some customers have struggled to book tickets for prices anywhere near what they booked before the war, and others have struggled to find tickets at all.
Some consumers’ anger over ticket prices has been exacerbated by El Al’s marketing campaigns in which the company said it was supporting Israelis through the war and through the travel challenges imposed by it. El Al capped prices for some of its flights, setting maximum prices aimed at helping customers continue to afford tickets.