El Al Airlines: From Near Bankruptcy to Dominance in Israeli Skies

El Al Airlines overcame near bankruptcy to dominate Israel's aviation sector amid an 18-month war. With a ceasefire in place, foreign airlines are slowly resuming flights. El Al aims to maintain its advantage through fleet upgrades and competitive pricing while addressing concerns of price-gouging during the conflict.

El Al Airlines, previously teetering on the brink of bankruptcy, has seized a dominant position in Israel's aviation market, a status achieved during an 18-month conflict where it largely had the skies to itself. The challenge for El Al now is sustaining its stronghold, as a January ceasefire with Palestinian militant group Hamas is witnessing foreign carriers gradually resuming flights to Israel, albeit on a reduced scale.

However, earning the trust of wary travelers amid fears of flight cancellations should tensions flare again could take time. As Israel's flag carrier, El Al, along with smaller competitors Arkia and Israir, seeks to extend the benefits of its monopoly. A fleet upgrade is underway, including the addition of five new 787s and the overhaul of older Boeing 777s, bolstered by recent orders for 737Max aircraft.

Despite accusations of price-gouging during the war, El Al reported a remarkable surge in profits, largely due to supply constraints and high demand. As global air travel recoils from limited capacity and the Trump-imposed tariffs cast a shadow, El Al ambitiously targets $4 billion in revenue by 2030. Its passenger share at Ben Gurion Airport reached 47% early in 2025, a testament to the airline's resurgence.

(With inputs from agencies.)