Israel's El Al airlines doubles net profit despite $55 million hit from Iran conflict

El Al Israel Airlines has reported a sharp increase in second-quarter profit, citing a recovery from the disruption caused by the Israel-Iran conflict despite significantly higher jet fuel costs.

The Israeli flag carrier said on August 5 that net profit doubled to $132 million in the second quarter, compared with $66 million a year earlier. Revenue rose to $986 million from $777 million over the same period, Reuters reports. 

The airline said the conflict with Iran had a $55 million impact on its results. During the fighting, Israel largely closed its airspace to commercial traffic, forcing El Al and other airlines to operate only limited flights. Although a ceasefire briefly halted the conflict, many foreign carriers have yet to resume services to Tel Aviv, leaving El Al with a dominant share of the market.

"We are entering the second half of the year from a position of financial strength, with a solid balance sheet and high liquidity," said Chief Financial Officer Gil Feldman.

El Al also reported an order backlog of $1.4 billion based on advance bookings and said it plans to increase seat capacity by up to 10% in the third quarter. The airline has added two Boeing 737 aircraft to its short-haul fleet and has returned older Boeing 777 jets to service.

The carrier's load factor stood at 90% in the second quarter, down slightly from 92% a year earlier.

"Based on current business trends, our order backlog and continued strong demand, we expect continued growth," CFO Feldman said.

By Sabina Mammadli