El Al Reports Record Profits Amid War-Time Monopoly: A Boon for Business, But at What Cost to Consumers?

El Al Reports Record Profits Amid War-Time Monopoly: A Boon for Business, But at What Cost to Consumers?

Edited by: TJVNews.com

El Al Airlines has posted an unprecedented net profit of approximately $545 million for the year 2024 — nearly five times its previous annual record — according to financial results released by the company on Wednesday. The striking earnings figure, reported by The Times of Israel, marks the highest profit in the airline’s history and comes on the heels of a year marked by geopolitical turmoil, widespread flight suspensions by foreign carriers, and an effective monopoly on key international routes.

According to the information provided in the TOI report, the Israeli flag carrier’s previous profit record of $116 million in 2023 was already notable, but it pales in comparison to this year’s windfall. The bulk of the surge appears to have been concentrated in the final quarter of 2024, when El Al posted a net profit of $130 million — more than triple the $40 million it earned in the same period a year prior.

El Al’s stellar year came against the backdrop of the October 7th Hamas-led massacre and the subsequent war in Gaza, which fundamentally altered the global aviation landscape. As regional conflict expanded to Lebanon, Yemen, Iraq, and even included two unprecedented direct attacks from Iran, international airlines grew increasingly reluctant to operate in Israeli airspace.

The resulting vacuum was a gift to El Al, which, unlike many of its foreign counterparts, continued operating flights throughout the year. The company capitalized on this advantage, achieving an average aircraft occupancy of 96% and securing a staggering 97.5% market share on North American routes, according to the information in the TOI report.

With most foreign airlines out of the picture, El Al effectively became the sole bridge between Israel and major destinations abroad — a responsibility it claims to have embraced as a national duty. However, while the airline’s leadership praised its performance as both a business and a service to the nation, critics have pointed to a less altruistic reality beneath the surface.

Amid growing complaints of exorbitant ticket prices throughout the year, El Al CEO Dina Ben Tal Ganancia sought to push back on the narrative, telling The TOI that fares rose “just 14%” on average per passenger in 2024. While technically accurate, the assertion has not silenced allegations of opportunistic pricing.

Travelers throughout the year reported fares to and from Israel that in many cases more than doubled, especially following the outbreak of hostilities. These reports, widely documented by the TOI, suggest that even if the average increase was 14%, the price spikes were far more dramatic on high-demand routes and during peak travel windows — precisely when many Israelis were urgently trying to reunite with loved ones or flee areas of unrest.

To the casual observer, it’s difficult to ignore the contrast between the airline’s record profits and the financial burden borne by ordinary travelers during a time of national crisis. While El Al insists it was maintaining a vital air bridge, many consumers have come away feeling that they were paying a steep premium for a service that, in practical terms, had nowhere else to turn.

El Al’s financial windfall also allowed it to drastically improve its balance sheet. As reported by The TOI, the airline slashed its net financial debt from $1.6 billion at the end of 2023 to just $75 million by the close of 2024 — a near-miraculous turnaround that highlights the exceptional nature of the year’s operating environment.

However, the airline’s near-monopoly may not last. The TOI report noted that competitors Israir and Arkia are preparing to launch their own North American routes in 2025, potentially ending El Al’s dominance. Additionally, the easing of regional tensions — including ceasefires with Hamas and Hezbollah — is prompting a slow but steady return of international airlines to Ben Gurion Airport.

United Airlines is set to resume service on March 15, with Delta Airlines following on April 1, according to The TOI. American Airlines, however, has not yet confirmed its return to the Israeli market.

El Al’s remarkable 2024 performance will likely be remembered as a landmark in the airline’s history — a year of soaring profits, debt reduction, and operational supremacy. But for many Israelis, the legacy may feel more complicated. As the numbers from The TOI report made clear, the airline has indeed weathered the storm — but in doing so, it may have left a bitter aftertaste among the very passengers it claims to have served.

For now, El Al’s boardroom has every reason to celebrate. But if the broader Israeli public emerges from this period feeling overcharged, underserved, and exploited during a national emergency, then perhaps the airline’s most pressing challenge in 2025 won’t be competition — it will be trust.