Can El Al Sustain Its High-Flying Profit Run Amid Middle East Turmoil?
El Al Israel Airlines surprised many by reporting a 19% jump in first-quarter net profit, reaching $96 million, up from $80.5 million a year earlier. This surge comes even as regional hostilities with Hamas in Gaza and Houthi missile threats from Yemen have kept several foreign carriers grounded, thinning the competition and keeping El Al’s planes nearly full.Seating Shortage Fuels DemandWith many airlines suspending services to Tel Aviv, El Al has been riding a wave of pent-up demand. Its load factor—the percentage of seats sold—climbed to 94.3% from 92.6% year-on-year, enabling the carrier to maintain premium fares and near-capacity f...
