After capitalizing on a near-monopoly during Israel’s 18 months of war, El Al Airlines is entering a new chapter—one defined by competition.
To maintain its edge, El Al is investing in fleet upgrades © X
After capitalizing on a near-monopoly during Israel’s 18 months of war, El Al Airlines is entering a new chapter—one defined by competition.
Once the sole major airline operating regularly out of Ben Gurion Airport near Tel Aviv during the conflict, El Al now faces the return of foreign carriers and a shifting market landscape.
During the height of the war, foreign airlines suspended flights due to security concerns. El Al, along with smaller Israeli carriers Arkia and Israir, became the only options for air travel to and from Israel. This scarcity, coupled with high demand, propelled El Al’s profits to $545 million in 2024, a nearly fivefold increase compared to the previous year. Revenues surged to $3.4 billion.
But that dominant position is quickly fading.
Since a ceasefire was brokered with Hamas in January, major international airlines have begun to trickle back into Israeli skies, albeit cautiously. Flights are returning with limited schedules, but their presence marks the end of El Al's war-era advantage.
El Al, which had previously struggled with losses exceeding $1 billion between 2018 and 2021, was seen as a company on the brink of collapse.
The Israeli government had even intervened with a $210 million bailout in 2021. Now, with competition returning, the airline must prove its long-term viability in a market it no longer controls.
To maintain its edge, El Al is investing in fleet upgrades—adding five new Boeing 787s, retrofitting older 777s, and introducing 737Max jets to modernize its short-haul operations. It continues to market itself as “The Spirit of Israel,” emphasizing reliability and national loyalty during times of crisis.
However, critics have accused El Al of war-time price gouging, citing fare spikes on key routes. The airline defends its pricing, attributing the increases to global supply chain constraints and last-minute demand following foreign carriers’ cancellations.
Meanwhile, smaller Israeli airlines are expanding their ambitions. Arkia, traditionally a regional player, has launched flights to New York and plans to scale up. “Competition is always good for clients,” said Arkia CEO Oz Berlowitz. “Especially in a region as volatile as the Middle East.”
As international airlines rebuild their Israel routes and customer confidence returns, El Al faces a more level playing field.
The question now is whether its wartime success can translate into peacetime sustainability—or whether it will be outflown by global competition.
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