El Al Isreal Airlines (ELAL) Q2 2025 earnings summary

Executive summary

• Q2 2025 results were significantly impacted by the war with Iran and a 10-day operational halt in June due to a military operation, resulting in a $100M hit to profit from direct damages, lost revenue, and passenger compensation.

• Net profit for Q2 2025 was $65.9M, down 55% year-over-year, and H1 2025 net profit was $161.5M, down 29.1% year-over-year, mainly due to the operational halt.

• Rapid operational recovery was achieved, with daily passenger numbers and full operations returning to pre-crisis levels by June/July 2025.

• High demand for flights persisted in H1 2025, with strong recovery in demand and high load factors expected to continue into H2 2025.

Financial highlights

• Q2 2025 revenue was $776.6M, down 7.4% year-over-year; H1 2025 revenue was $1,550.3M, down 1.7% year-over-year.

• Q2 2025 EBITDAR was $178.8M, a 36.3% decrease year-over-year; H1 2025 EBITDAR was $335.9M, down 28.3% year-over-year.

• Net profit for Q2 2025 was $65.9M, down 55.3% year-over-year; H1 2025 net profit was $161.5M, down 29.1% year-over-year.

• Profit before tax dropped 54% to $88M in Q2 2025.

• Free cash flow after debt service was $69.2M in Q2 2025 and $208.3M in H1 2025.

Outlook and guidance

• High demand and strong booking trends are expected in H2 2025, with load factors projected to remain high.

• Q3 2025 ASK is expected to rise 3.1% year-over-year.

• Operating expenses as a share of revenue are expected to increase in H2 2025 due to higher input costs and a stronger shekel.

• Foreign airlines are gradually returning, but with lower seat supply, while ASK in the global industry is projected to rise 13% by end-2025 (excluding Far East).