Israel's El Al Airlines lands record profit as anger mounts over prices
Adds CEO and CFO comments from paragraph 4, detail
By Steven Scheer
TEL AVIV, Nov 20 (Reuters) -El Al Israel Airlines ELAL.TA posted record quarterly profit and revenue on Wednesday, lifted by its near-monopoly as many overseas carriers cancel flights due to conflict in the region.
The Israeli airline faces criticism from customers in Israel and abroad for price-gouging since the Gaza war triggered by the Hamas attacks in Israel in October last year.
El Al has benefited as the main U.S. and European airlines stopped flights, with some not expected to resume them until April 2025 and others saying until further notice.
Chief Executive Dina Ben-Tal Ganancia said El Al's fares are only 16% higher this year and that prices have soared globally due to strong demand and limited capacity.
Israel's flag carrier, which had often struggled to stay profitable before the Gaza war, posted a third-quarter net profit of $187 million, up from $52 million a year earlier.
Revenue rose 44% to $1 billion, while its passenger load factor rose to 94% from 88% a year ago.
"El Al has been operating in an emergency mode for more than a year, and our goal is to ensure that the skies remain open between Israel and the world. This is an essential move for the continuation of business, economic and diplomatic activity in the country," Ben-Tal Ganancia told a press conference.
She noted a shortage of both new and second-hand planes. El Al signed a deal with Boeing BA.N in August for the purchase of up to 31 737 MAX aircraft worth as much as $2.5 billion.
"We continue to experience increased demand for El Al flights, which is significantly higher in relation to the seat capacity that the company is able to offer," she said.
Ben-Tal Ganancia added that El Al has put price ceilings in place as well as offering low fixed fares to Larnaca, Athens, Vienna and Dubai, where passengers can find connections.
Chief Financial Officer Yancale Shahar said El Al was looking to diversify into insurance and credit cards to expand. It had offered to buy 45% of Israel's largest credit card firm Isracard, but pulled the bid.
"The main thing is the core business of flying people. But there's limits of where you can reach by only doing the core of your business," he said, declining to detail El Al's future plans. "We are not doing enough, but we will expand."
Reporting by Steven Scheer, Editing by Louise Heavens and Alexander Smith
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