El Al presents record high revenues and profit due to the lack of competition

El Al, Israel's flag carrier airline, has released its financial statements for the fourth quarter of 2023, dubbed the "war quarter," showcasing remarkable growth despite the challenging circumstances. The standout figure is the company's net profit, which soared to $40 million, marking a staggering 370% increase compared to the same period in 2022, where it stood at $8.5 million.

Throughout the tumultuous year of 2023, El Al experienced substantial growth in various financial indices. Revenues for the fourth quarter surged by 21%, reaching $670 million, compared to $561 million in 2022. Moreover, the airline's annual revenues surpassed the $2.5 billion mark, a notable increase from $2 billion in 2022. This impressive performance can be attributed to several factors, including a drop in jet fuel prices, resulting in savings of approximately $17 million.

The outbreak of war further bolstered El Al's position in the market. With many competitors halting regular flights to Israel, including popular low-cost carriers, El Al found itself virtually monopolizing certain routes, particularly those to the USA. Consequently, the airline's market share during the conflict surged from 22% to an impressive 80%, leading to a corresponding increase in ticket prices. Flights to New York commanded prices of up to $2,000, while tickets to London soared to around $800.

Investors responded positively to El Al's robust performance, with the company's stock witnessing a remarkable 70% surge over the last three months.

Dina Ben-Tal Gannasia, CEO of El Al, emphasized the company's commitment to serving the country during times of crisis, stating, "Even without the war, we would have presented good results this year. Since the outbreak of the war, we mobilized absolutely for the benefit of the country and operated in an emergency mode, while we guarantee an air bridge to and from the country. The annual results reflect a trend line of deep improvement in our core businesses. This is one of the best years in its history."

Yankel Shahar, VP of Finance at El Al, echoed these sentiments, highlighting the company's resilience in both normal and emergency situations. "The financial results clearly express the company's resilience in both normal and emergency situations. We show a significant and continuous improvement throughout the year, not only in the last quarter, the quarter of the war," Shahar commented.

El Al's remarkable performance amidst adversity underscores its strength and