El Al Isreal Airlines (ELAL) Q1 2026 earnings summary

Executive summary

• Q1 2026 was heavily impacted by Operation Roaring Lion, resulting in a net loss of $67M and a revenue decline to $562M, with a 40-day suspension of regular flight operations and significant additional costs, but the company maintained high liquidity and continued strategic investments.

• Despite the disruption, rapid recovery in ticket sales and backlog was observed post-operation, with April 2026 achieving record monthly sales of $560M and strong forward bookings for the summer.

• Strategic initiatives included fleet renewal and expansion, new route launches, a 10-year Fly Card credit card agreement, labor agreements, and the opening of a premium lounge.

Financial highlights

• Total revenues for Q1 2026 were $562M, down from $774M in Q1 2025, with EBITDAR at $16M versus $213M, and a net loss of $67M compared to a net profit of $96M in Q1 2025.

• Free cash flow was negative $78M, mainly due to the operation's impact, while cash and liquid resources remained strong at $1.91B as of March 31, 2026.

• Operating expenses decreased slightly, but as a percentage of revenue, rose sharply due to fixed costs during the suspension.

• Jet fuel expenses dropped due to lower consumption, despite a 35.2% increase in prices; hedging provided a positive impact.

• Dividend of $102M was paid in Q1 2026.

Outlook and guidance

• Management expects high load factors and increased demand in Q2 and Q3 2026, with RASK projected to rise 1–4% and ASK to grow 6–10% year-over-year, and a strong summer season with record bookings.

• Warns that further deterioration in Israel's security situation could materially impact forecasts and operational metrics.

• Recovery at Ben Gurion Airport is anticipated, but the return of foreign airlines is expected to be gradual.

• Strategic measures to reduce operating expenses and partial price adjustments are expected to offset adverse impacts from the operation and rising fuel costs.

• Ten new destinations and expanded routes planned for the upcoming season.