Israel’s El Al Dominates War Period, Now Faces Renewed Foreign Competition
During 18 months of conflict, El Al emerged as Israel’s dominant carrier with soaring profits despite price criticism. Now, with international carriers cautiously resuming flights following a ceasefire, the airline faces renewed competition as it pursues aggressive expansion plans.
Published on April 9, 2025
Over the past 18 months of conflict, El Al emerged as Israel’s dominant carrier as foreign airlines largely suspended operations, a situation that allowed the national airline to significantly boost profits—even amid accusations of price-gouging. The carrier capitalized on limited competition, posting a five‐fold increase in profits to $545 million in 2024, a period during which it carried 6.6 million passengers and secured 48% of the Ben Gurion Airport market share.
Following the January ceasefire with Hamas, international carriers have cautiously resumed flights, intensifying competition. As El Al charts an ambitious expansion program—including acquiring additional aircraft and forming new partnerships—it faces the dual challenge of maintaining customer loyalty and competing with both returning foreign carriers and expanding local rivals, Arkia and Israir. In a significant move, Reuters reported that El Al is set to resume Moscow flights in May 2025, underscoring its strategy to diversify its route network amidst an evolving global aviation landscape.