El Al Israel Airlines reports profit decline despite record revenue. The carrier's net profit fell 26 percent to $403.3 million in 2025, even as annual revenue reached a record $3.48 billion. The decline stems from multiple headwinds including increased competition as foreign airlines resume Israeli operations, currency headwinds from shekel strength that reduced profits by $77 million, and geopolitical disruptions from the Iran conflict that cost approximately $100 million. Excluding the war impact, profit would have declined only 7 percent. El Al also absorbed $30 million in one-time expenses. Fourth quarter results weakened significantly with profit dropping to $46.2 million from $130 million year-over-year. Despite challenges, the airline plans to launch nine new routes and will pay its first dividend since 2017, signaling management confidence in future recovery.
