El Al Isreal Airlines (ELAL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $1,004M, up 44.3% year-over-year, with net profit of $187.4M, a $135M increase from Q3 2023, driven by record demand, limited foreign airline operations, and increased cargo activity.

• EBITDAR more than doubled to $360M in Q3 2024; EBITDA was $336M, with operating margin rising to 26.9%.

• Load factor reached 93.8% in Q3 2024, reflecting strong demand and network optimization.

• The company raised $140M in April 2024, closing Q3 with $1.25B in cash and deposits, and transitioned to positive equity.

• Strategic fleet expansion and renewal plans are underway, with significant aircraft orders and upgrades to meet future demand.

Financial highlights

• Revenue for the first nine months of 2024 totaled $2,581M; net profit for the period was $415.2M.

• EBITDAR for the first nine months reached $837M.

• Available seat kilometers (ASK) increased 14.9% year-over-year in Q3 2024.

• RASK rose 23% year-over-year to 11.5 cents in Q3 2024.

• Net debt/EBITDA improved to 0.4 by Q3 2024, with net debt reduced to $375.6M.

Outlook and guidance

• Global air travel demand is at record highs, with IATA projecting 10% passenger growth in 2024.

• Q4 2024 is expected to deliver strong results, though ASK is forecast to decrease sequentially due to capacity constraints.

• Aircraft supply constraints and pilot shortages are expected to persist, driving higher prices and limiting capacity growth.

• Ongoing war and security conditions introduce significant uncertainty to forecasts; demand remains high but is subject to rapid change.

• Strategic plan targets a 22–29% fleet expansion by 2028, though supply chain delays may push completion beyond that date.