El Al Hit by $145 Million in War-Related Losses as Iran Conflict Shuts Israeli Airspace

El Al reported heavy financial losses in the first quarter of 2026 after the war with Iran triggered widespread disruptions to Israeli aviation, forcing prolonged airspace closures and sharply reducing passenger traffic.

The Israeli flag carrier said it posted a net loss of $67 million during the first quarter, reversing a $96 million profit recorded during the same period in 2025.

In a statement, the airline attributed the downturn primarily to the military confrontation with Iran, which erupted on February 28, alongside rising fuel prices and the near-total shutdown of Israeli airspace throughout much of the conflict.

El Al said first-quarter revenue fell 27% year-on-year to $562 million as operations were severely constrained during the height of the crisis.

The company estimated total war-related damages at approximately $145 million, including $90 million incurred during the first quarter and an additional $55 million expected in the second quarter.

Israeli airspace remained largely closed throughout March due to repeated Iranian missile barrages and only gradually reopened shortly before a ceasefire was reached in April.

The conflict also triggered a prolonged suspension of flights by many major foreign airlines, most of which have yet to fully resume services to Tel Aviv over concerns about renewed hostilities.

The absence of international competitors has effectively left El Al with near-monopoly conditions on many routes, a situation similar to what the carrier experienced during much of the two-year Gaza war period.

While the reduced competition has supported market share, analysts say the operational and security costs associated with the Iran conflict have outweighed those gains, placing significant pressure on the airline’s profitability and long-term recovery prospects.

The latest figures underscore the broader economic impact of regional instability on Israel’s aviation and tourism sectors, as airlines continue to grapple with elevated geopolitical and operational risks across the Middle East.