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El Al (ELAL) AI Stock Analysis

IL:ELAL

El Al

(TASE:ELAL)

Select Model
Rating:74.6Outperform
Price Target:ILA 2,078.00â–²(7.00% Upside)
Action:reiterated
Date:10/01/26

The overall score reflects a successful financial turnaround with solid profitability and a strengthened balance sheet, tempered by leverage and volatile free cash flow, alongside a strong but somewhat extended price trend and a moderately attractive valuation.

Positive Factors
Sustained profitability turnaroundThe shift from loss-making operations to solid positive operating and net margins demonstrates a meaningful earnings turnaround. If maintained, this profitability can strengthen internal funding capacity, support operational resilience, and establish a more durable base for future performance.
Negative Factors
Elevated leverageDebt remaining above equity leaves El Al more exposed to demand shocks, fuel and foreign-exchange volatility, and refinancing conditions than a lower-leverage airline. This can constrain capital allocation and increase the earnings sensitivity of the business over coming quarters.

El Al (ELAL) vs. iShares MSCI Israel ETF (EIS)

-20%-10%0%10%20%30%40%IL:ELAL+36.04%EIS+15.20%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
ILS 11.49B
Dividend Yield
2.91%
Average Volume (3M)
1.93M
Price to Earnings (P/E)
11.5
Beta (1Y)
0.09
Revenue Growth
-11.24%
EPS Growth
-54.06%
Country
Israel
Employees
3,169
Sector
General
Sector Strength
55
Industry
Airlines, Airports & Air Services

El Al Business Overview & Revenue Model

Company Description

El Al Israel Airlines Ltd., established in 1948 and headquartered in Lod, Israel, operates as a multifaceted aviation and travel enterprise. The company's core business involves transporting passengers and cargo, connecting approximately 40 direct de...

How the Company Makes Money

El Al primarily makes money by selling air transportation and related services. Its main revenue stream is passenger revenue: selling airline tickets across cabin classes (e.g., economy and premium cabins) on its scheduled routes, with pricing influe...

El Al Financial Statement Overview

Summary

El Al has transitioned from deep losses to solid profitability with expanding margins and a much stronger equity base, though leverage remains meaningful and free cash flow is volatile and recently weaker than earnings.

Income Statement

78Positive

Balance Sheet

71Positive

Cash Flow

59Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.48B3.76B3.43B2.50B1.99B857.17M
Gross Profit1.03B1.36B962.60M396.00M309.37M-103.31M
EBITDA695.19M917.72M1.06B509.20M326.70M-84.10M
Net Income305.14M436.56M541.40M112.60M108.70M-413.04M
Balance Sheet
Total Assets5.57B5.00B4.38B3.32B3.19B2.83B
Cash, Cash Equivalents and Short-Term Investments2.10B1.99B1.40B405.70M283.42M90.53M
Total Debt1.16B1.28B1.53B1.91B2.09B2.19B
Total Liabilities4.45B3.95B3.85B3.53B3.54B3.38B
Stockholders Equity1.10B1.05B545.90M-187.30M-320.88M-549.49M
Cash Flow
Free Cash Flow312.99M762.17M1.24B324.70M246.76M-21.11M
Operating Cash Flow940.29M1.13B1.45B455.50M312.89M-558.00K
Investing Cash Flow-719.93M-980.72M-1.11B-174.50M-59.49M7.94M
Financing Cash Flow-146.54M-183.05M-198.10M-179.10M-56.10M15.17M

El Al Technical Analysis

Technical Analysis SentimentPositive
Last Price1942.00

Price Trends

50DMA1761.96Positive
100DMA1592.77Positive
200DMA1550.10Positive

Market Momentum

MACD51.13Positive
RSI61.43Neutral
STOCH46.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ELAL, the sentiment is Positive. The current price of 1942.00 is above the 20-day moving average (MA) of 1890.80, above the 50-day MA of 1761.96, and above the 200-day MA of 1550.10, indicating a bullish trend. The MACD of 51.13 indicates Positive momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 46.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ELAL.

El Al Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IL:ELAL against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IL:ELALIL:ELAL75OutperformILS 11.57B11.5169.39%2.91%-11.24%-54.06%
IL:ISRGIL:ISRG57NeutralILS 459.53M-97.53――2.30%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-20%0%20%40%IL:ELALIL:SHGRIL:KNFMIL:GKLIL:OVRSIL:ISRGDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
IL:ELAL and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IL:ELALEl Al Israel Airlines 1942.00548.4139.35%
IL:SHGRShagrir Group Vehicle Services 1331.00-546.75-29.12%
IL:KNFMKnafaim Holdings Ltd.1777.00301.6520.45%
IL:GKLGlobal Knafaim Leasing Limited104.3023.8029.57%
IL:OVRSOverseas Commerce Ltd.533.2036.177.28%
IL:ISRGIsrair Group Ltd171.50-3.70-2.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 01, 2026