Tel Aviv 35 beckons for El Al
El Al's share price rose 13% in two days after an attempted attack on a flydubai flight, boosting its market cap to NIS 11.5 billion. Investors expect increased bookings as Israelis avoid Gulf-based airlines. The airline is now a leading candidate for promotion to the Tel Aviv 35 flagship index for the first time.
El Al's share price surged 13% in two days following the attempted attack on a flydubai flight last week, pushing the airline's market cap to NIS 11.5 billion. Investors are betting that the security incident will drive a new wave of demand for El Al seats, as Israelis grow wary of flying with foreign airlines, particularly those based in Gulf states. The airline has already leveraged the event to secure renewed Shin Bet approval for flights to the UAE. This pattern mirrors El Al's experience during the Swords of Iron war, when foreign airlines frequently cancelled flights, boosting El Al's market share and ticket prices. El Al posted a cumulative net profit of $1.04 billion from October 2023 through Q2 2026, with Q2 2026 net profit up 103% year-over-year to $126 million. It now holds a 50% share of passenger traffic at Ben Gurion Airport and a dominant 92% market share on profitable North American routes. The recent share price rise positions El Al for a potential promotion to the Tel Aviv 35 flagship index for the first time, competing with Doral, Energix, and Fattal Holdings. The controlling Rozenberg family, who invested NIS 840 million six years ago, now holds shares worth over NIS 4.6 billion.