Israir Revenue Surges in 2025 but Profit Falls on Currency Pressures and the Iran War Impact

 Israeli airline Israir reported a sharp rise in revenue for 2025, driven by record passenger volumes, but posted a significant decline in net profit due to currency fluctuations and the impact of the ongoing conflict. The carrier said net profit fell 30% to $16.8 million. The decline was attributed in part to the impact of the military operation known as “Am KeLavi,” which reduced profitability by approximately $7.5 million.

Currency movements also weighed heavily on results, with exchange rate shifts between the shekel, U.S. dollar and euro cutting operating profit by about $14 million, the company said. Operating profit fell 22% to $25.5 million.

Revenue jumps 52% on strong demand 

Despite the drop in profit, Israir reported a 52% increase in annual revenue to $690 million, reflecting strong travel demand.

The company said around 40% of its revenue came from tourism and ancillary services, which generated $29 million in 2025, up 11% from the previous year.

Online sales also hit a record high, with the airline’s website generating approximately $142 million in revenue, compared with $112 million in 2024. Revenue from ancillary products rose to about $61 million, up from $37 million a year earlier.

Cash reserves decline 

Israir’s cash flow rose 35% to $100 million, supported by accounting changes related to depreciation, working capital adjustments, and growth in order backlog, including activity from its subsidiary Ski Deal.

However, cash and cash equivalents fell 30% to $25.2 million, as the airline invested heavily in expanding its operations.

The company said it purchased two new aircraft at a cost of $39 million, including $25 million funded from its own resources. It also acquired a hotel asset in Italy for $3.2 million, made a $1.5 million payment related to a maintenance facility in Cyprus, and paid a $7.4 million advance for two additional wide-body aircraft.

Uncertainty over impact of ongoing military operations

Regarding the current military campaign, referred to by the company as “Shaagat HaAri” (“Roar of the Lion”), Israir said it is too early to assess the full financial impact due to uncertainty over its duration and the trajectory of oil prices.

The airline noted, however, that the timing of the operation — in the first quarter of the year — may limit its effect compared to previous conflicts, as it primarily overlaps with the relatively weaker travel months of April and May rather than the peak summer season.

Israir added that the conflict could influence foreign airline activity in Israel during summer 2026, potentially affecting ticket prices and increasing demand for Israeli carriers. It also warned of potential impacts on its subsidiaries, particularly Ski Deal and inbound tourism operations under Diesenhaus.