El Al Stock Hits Record 11.5 Billion NIS Valuation on Flight Security Fears
El Al shares surged 13% to a record 11.5 billion NIS following a security incident on a flydubai flight, boosting investor confidence amid rising demand for Israeli carrier flights.
The security incident involving a flydubai flight last week sent shockwaves through the global aviation industry. However, on the Tel Aviv Stock Exchange, the response was distinct—particularly in El Al shares, which posted a two-day surge of 13% to reach a record market capitalization of 11.5 billion NIS. While the investigation into the dramatic airborne event continues, El Al investors appear convinced of its implications: a renewed wave of demand for flights with the Israeli national carrier and the continuation of its stellar three-year run, during which it has added over 450% to its market value.
Investors in Tel Aviv are seemingly convinced that El Al will benefit in the near term from increased booking flows amid Israeli anxieties over flying with foreign carriers, particularly those operating from Gulf states. Investors have tangible grounding for this belief: local airlines leveraged the security event to demand and receive renewed authorization to fly to the Gulf. Furthermore, anxiety and uncertainty regarding the operation of foreign airline flights have proven time and again to be a powerful growth engine for El Al during the Swords of Iron war. Over the years, foreign carriers have repeatedly canceled flights to Israel or delayed their return due to wartime developments, resulting in a soaring market share for El Al and subsequent ticket price hikes.
Strong Financial Results and Market Dominance
Investor optimism is also anchored in El Al's robust financial results in recent years. From the outbreak of the Swords of Iron war through mid-2026, the company accumulated a total profit of $1.04 billion. El Al closed the second quarter of this year—which began on a challenging note due to the "Roar of the Lion" operation in Iran—with a 103% surge in net profit compared to the same quarter last year, reaching $126 million. The company currently commands about 50% of all passenger traffic at Ben Gurion Airport and has maintained an exceptional 94% occupancy rate on its aircraft for several years. This is alongside near-total dominance of over 92% on profitable North American routes and a future order backlog standing at approximately $1.4 billion.
The recent rally in El Al stock places the company in a historic position: a potential entry, for the first time in its history, into the prestigious TA-35 flagship index of the local bourse. El Al, which returned to the TA-125 and TA-90 indices in 2024 after an absence since 2017, has now emerged as one of the prominent contenders in the race for available slots ahead of the upcoming index update in November. It is competing head-to-head with renewable energy firms Doral and Energix, while the hotel chain Fattal lags slightly behind them in the race.
The Rosenberg Family's Massive Gains
The primary beneficiaries of El Al's stock surge are controlling shareholders Kenny Rosenberg and his son Eli. They acquired control of the company exactly six years ago at the height of the COVID-19 pandemic, when the skies were closed and the airline stood on the brink of collapse. That bold gamble has proven to be one of the most successful and profitable moves on the local stock exchange.
Over the years, the Rosenberg family has invested 840 million NIS in the company. Today, the value of the shares they hold has soared to over 4.6 billion NIS. In addition, El Al resumed dividend distributions this year for the first time since 2017, with the owners' share amounting to 150 million NIS, bringing the family's paper profits on their El Al investment to nearly 4 billion NIS.
Another potential beneficiary of the situation is the Isracard credit card company, controlled by Delek Group, which began marketing El Al's frequent flyer club credit cards (Fly Card) this year. These cards have sought to differentiate themselves from other airline loyalty programs in recent months under the messaging that no one would want to fly with other airlines. In this regard, the attempted terror incident on the flydubai plane certainly serves Isracard's marketing line, as it acquired El Al's loyalty card portfolio from rival CAL following a substantial investment. Nonetheless, El Al, its frequent flyer club, and Isracard have not yet provided data or confirmed whether there has been a measurable increase in bookings in the days following the incident.
