El Al Isreal Airlines (ELAL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $839.1M, up 33.2% YoY; net profit reached $147.4M vs. $58.9M.

• H1 net profit rose to $227.9M from $24.5M, amid elevated demand, higher fares and reduced foreign airline service.

• Liquidity improved and equity returned to positive territory at $200.5M as of June 30, 2024.

Financial highlights

• H1 operating revenue rose 39.6% to $1,577.0M; operating profit reached $335.9M vs. $97.6M.

• Q2 EBITDAR was $281M, up 72% YoY; operating cash flow was $391M vs. $119M.

• Cash and available deposits rose to $1,089.6M; net financial debt was $611M at June 30, 2024.

• A $15.0M impairment reversal contributed non-recurring other income in Q2 and H1.

Outlook and guidance

• Strategic plan targets $3.5B revenue and a 17%–21% EBITDAR margin by 2028, with net debt/EBITDA of 3–4x.

• Fleet renewal aims to increase seat capacity from 6.2M in 2023 to 8.8M by 2031; supply-chain delays may extend the plan beyond 2028.

• Projected free cash flow after debt service following fleet-plan completion is $195.4M, subject to operating and delivery assumptions.

• Elevated demand and foreign airline cancellations prompted additional flights and seats, particularly to Athens and Larnaca.