Back in the Sky: How EL AL Rebuilt Its Entire Global Network After Major Airspace Groundings

Written By: Abhirup Gan

Abhirup Gan

I'm Abhirup Gan, a Mass Communication graduate and digital marketing professional. Driven by a passion for storytelling, I create insightful, research-led content that explores tourism trends, destination stories, and hospitality developments with depth and clarity. Through my writing, I hope to inspire readers to discover not only where to travel, but the stories, cultures, and experiences that make every journey meaningful.

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May 27, 2026 5:02 PM

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Israel, Tel Aviv, Ben Gurion Airport, and the broader Middle Eastern aviation market are entering a major recovery phase after EL AL Israel Airlines reported a sharp financial setback tied to operational disruption caused by Operation Roaring Lion during the first quarter of 2026.

The military operation significantly affected air travel throughout Israel by halting or restricting operations at Ben Gurion Airport for approximately 40 days, severely disrupting passenger traffic, airline scheduling, and international connectivity.

EL AL reported first-quarter revenue of approximately $562 million, compared with $774 million during the same period one year earlier. EBITDAR dropped sharply to about $16 million from $213 million in the prior-year quarter, while the airline recorded a net loss of approximately $67 million after posting a $96 million profit during Q1 2025.

Despite the operational disruption and financial pressure, EL AL stated that demand rebounded strongly once airport operations normalised in mid-April.

Operation Roaring Lion Severely Impacted Israeli Aviation

Operation Roaring Lion created one of the most significant operational disruptions affecting Israeli aviation in recent years.

The restrictions imposed on Ben Gurion Airport, Israel’s primary international gateway, heavily affected domestic and international flight operations throughout much of the quarter.

EL AL estimated the total financial impact of the disruption at approximately $145 million, with around $90 million absorbed during Q1 and the remaining $55 million affecting April operations.

Operational metrics reflected the scale of the disruption. Available seat kilometers declined by approximately 20%, while load factor dropped to 83% compared with 94% during the same period in the previous year.

Revenue per available seat kilometer also declined by roughly 14% as flight cancellations, operational restrictions, and lower passenger volumes affected overall network performance.

Cash flow from operations fell to approximately $233 million compared with $352 million one year earlier.

Ben Gurion Airport Recovery Drives Booking Surge

As operations normalized during mid-April, EL AL experienced a rapid rebound in travel demand ahead of the summer 2026 season.

By the end of April, the airline’s forward bookings backlog had reached approximately $1.2 billion, highlighting a strong recovery in both leisure and business travel demand.

April alone generated around $560 million in ticket sales, the highest monthly sales figure in EL AL’s history.

The rebound demonstrates the importance of Ben Gurion Airport as Israel’s primary international aviation gateway and reflects continued demand for international connectivity despite regional instability.

EL AL now expects to increase summer seat capacity by approximately 6% to 10% as passenger demand strengthens across Europe, North America, and other major international travel markets.

The airline’s summer schedule is expected to focus heavily on restoring network capacity and capturing strong seasonal tourism demand involving Israeli outbound travel and international visitors.

Strong Liquidity Helps EL AL Navigate Crisis Conditions

Despite the first-quarter loss, EL AL entered the crisis period with substantial liquidity and strong balance-sheet positioning.

At the end of the quarter, the airline reported approximately $1.9 billion in available liquid resources while shareholders’ equity stood near $1.01 billion.

The company also maintained net cash exceeding debt by roughly $734 million, giving management operational flexibility during the disruption period.

Industry analysts note that EL AL’s strong liquidity position allowed the airline to absorb short-term operational shocks while continuing long-term strategic investments.

The airline emphasized that maintaining Israel’s essential air bridge during the disruption remained a major operational priority throughout the crisis.

EL AL continued operating critical services despite difficult regional conditions, helping preserve international connectivity for Israel during periods of severe aviation disruption.

Boeing 787 Expansion Continues Despite Operational Pressure

Even during the operational crisis, EL AL continued advancing its long-term fleet modernization program.

The airline exercised options for six additional Boeing 787 Dreamliner aircraft, including four upgraded Boeing 787-10 variants, while also securing options for six more future aircraft deliveries.

The Boeing 787 family remains central to EL AL’s long-haul network strategy because of its fuel efficiency, operational range, and premium passenger capabilities.

The fleet expansion supports the airline’s long-term growth plans involving Europe, North America, and Asia-Pacific international routes.

The continued investment also demonstrates management confidence in future travel demand recovery despite the short-term disruption created by Operation Roaring Lion.

Fleet modernization remains particularly important as airlines across the Middle East continue competing aggressively for long-haul passenger traffic and premium international travel demand.

Loyalty Program and Labor Stability Strengthen Operations

EL AL also continued strengthening internal operational stability during the quarter through new labor and loyalty agreements.

The airline finalized long-term agreements with both its Workers Union and Pilots’ Committee, improving labor certainty and supporting long-term operational planning.

In the loyalty segment, EL AL signed a new 10-year agreement transferring Fly Card operations to Isracard.

The agreement is expected to contribute approximately NIS 1 billion over the duration of the partnership.

Loyalty program membership also continued growing, reaching approximately 3.6 million members, including about 528,000 Fly Card holders.

Airline loyalty programs remain increasingly important revenue sources for global carriers because they generate recurring financial income independent of direct ticket sales.

Israeli Aviation Sector Focuses on Summer Recovery

The recovery of Ben Gurion Airport operations is now helping stabilize Israel’s broader tourism and aviation industries ahead of the critical summer travel season.

International carriers and tourism operators continue monitoring regional security conditions closely, but travel demand involving Israel has strengthened noticeably following the resumption of normal airport activity.

The airline industry remains highly sensitive to geopolitical developments across the Middle East, yet EL AL’s booking recovery suggests that passenger demand can rebound rapidly once operational certainty improves.

Industry observers expect EL AL to continue focusing on operational resilience, network restoration, and long-term fleet growth while managing ongoing geopolitical uncertainty.

Conclusion

Israel, Tel Aviv, and Ben Gurion Airport are entering a major aviation recovery phase after EL AL reported heavy first-quarter losses caused by Operation Roaring Lion and the prolonged disruption of airport operations. Despite the financial setback, the airline demonstrated strong resilience through solid liquidity, rapid booking recovery, record April ticket sales, continued Boeing 787 fleet expansion, and rising summer travel demand, positioning EL AL for renewed growth as Israeli aviation networks stabilize ahead of the peak 2026 travel season.