El Al Isreal Airlines (ELAL) investor relations material

Executive summary

• Q3 revenue reached a record $1,268.9M, up 18.2% YoY; EBITDAR was $367.3M, while net income fell 13.7% to $174.8M.

• Strong demand, expanded capacity, high load factors and loyalty-program growth supported results; higher fuel and other costs, currency effects and one-time revaluation impacts weighed on profitability.

• Available seat kilometers grew 8.8% YoY while load factor was 94.6%; forward bookings reached a record $1,079M, up 16% YoY.

• Operational performance reached the upper end of forecasts; inclusion in the TA-35 Index was announced in October 2026.

Financial highlights

• Q3 operating income was $243.6M, down 6.6% YoY; pretax income fell 12.1% to $233.1M and net income fell 13.7% to $174.8M.

• Q3 operating expenses rose 26.1% to $1,025.3M, outpacing revenue growth; fuel costs increased 68.7% to $287.1M.

• 9M revenue rose 7.4% to $2,817.4M; operating income declined 35.8% to $307.7M and net income declined 34.0% to $240.2M.

• 9M operating cash flow was $752.2M versus $822.9M; Q3 free cash flow after debt service and before tax was $263.2M.

• Basic EPS was $0.292 in Q3 versus $0.364; 9M basic EPS was $0.395 versus $0.678.

Outlook and guidance

• Q4 ASK is expected to grow 10%-14% YoY, RASK 1%-4%, with load factors of at least 90%.

• Outlook reflects strong demand and high load factors alongside intensifying competition and rising jet-fuel prices.

• Forecasts remain sensitive to regional security disruption that could restrict flight operations, Ben Gurion Airport operations and third-party activity.