El Al receives state approval to distribute dividend

El Al Israel Airlines has notified the Tel Aviv Stock Exchange (TASE) that it has received state approval to resume distributing dividends to investors in 2025, one year earlier that the agreement it signed with the state during the Covid pandemic. However, El Al will not be able to distribute dividends on the record profits it earned in 2023-2024. In 2024, due to the war, which made it the dominant airline in Israel's skies, as foreign carriers stopped flying to Israel, especially on the profitable routes to the US, El Al reported record profits of $545m, an almost five-fold jump from 2023, on record revenue of $3.4b, up 37% from 2023, which was itself a record. El Al has now announced that it will be able to distribute up to 30% of net profit in 2025 and up to 40% in 2026-2028. After that, there will be no more restrictions on dividend distribution. El Al also stresses that the state agreed to amend the agreement (cancelation of the dividend restriction clause), after El Al "completed repayment of all loans the state provided to the company, totaling $45m, in the fourth quarter of 2021." El Al also notes that as of today, "No decision has been made about distribution of a dividend for the 2025 profits, and if such a decision is made, it will be published in a proper manner."<br/>