El Al Isreal Airlines (ELAL) Q3 2024 earnings summary

Executive summary

• Q3 revenue was $1,003.5M, up 44.3% YoY; EBITDAR reached $360.1M and net income was $187.4M, amid strong demand and constrained seat supply.

• Foreign-carrier cancellations amid ongoing emergency conditions kept demand for Israel flights above available capacity.

Financial highlights

• Q3 operating profit was $269.9M versus $85.4M YoY; profit before tax was $245.7M versus $52.2M. Expenses rose 20.2%, below revenue growth of 44.3%.

• 9M revenue was $2,580.6M and net income $415.2M; operating profit was $605.8M versus $183.1M, while profit before tax was $538.5M versus $85.3M.

• Q3 cargo revenue rose $36.1M YoY to $62.1M; passenger revenue rose 41.1%. 9M cargo revenue increased $105.8M and passenger revenue rose 38.4%.

• Q3 net financing expenses declined $9.0M YoY to $24.2M; 9M expenses fell $30.5M to $67.3M, mainly on higher deposit interest and lower debt costs.

• 9M net income included a $15.0M impairment reversal tied to Boeing 777 refurbishment.

Outlook and guidance

• Q4 results are expected to be high versus Q4 2023, while ASK is expected to decline QoQ from Q3 because of production-capacity constraints.

• Procurement-plan completion is expected beyond 2028 due to aircraft and engine supply constraints and geopolitical conditions.

• Route focus remains on the USA, Thailand, London and Paris; published fare caps and flexible ticket terms may change with security conditions.