El Al to pay first dividend since 2017

Core Viewpoint - El Al Israel Airlines Ltd. is set to distribute its first dividend since 2017, following an agreement with the state that allows for this distribution after the company increased its contribution to security costs [1][5]. Financial Performance - The board of directors has approved a cash dividend of approximately $100 million, or about $0.18 per share (NIS 0.57), based on profits from the first three quarters of 2025 [2]. - The dividend represents 30% of the net profit attributable to shareholders, which amounted to $353.3 million during the same period [3]. Shareholder Information - The Rozenberg family, as controlling shareholders with a 45.1% stake, is expected to receive around $45 million from the dividend distribution [3]. Cash and Equity Position - As of the end of the third quarter, El Al reported cash, cash equivalents, and liquidity balances totaling approximately $1.83 billion, with equity attributable to shareholders at about $1 billion [4]. Regulatory Context - The approval for the dividend distribution is part of an amendment to agreements made during the Covid period, allowing El Al to distribute up to 30% of 2025 profits as dividends, and up to 40% in the years 2026-2028 [5]. Tax Situation - El Al currently does not pay corporate tax due to accumulated past losses, primarily from the Covid years, and continues to offset profits against these losses for tax purposes [6]. Operational Performance - The company has experienced exceptional profitability in recent years, aided by improved operations and reduced competition from foreign airlines during the war, particularly on profitable routes to the US. In 2024, El Al recorded a record profit exceeding $500 million, with continued positive trends into 2025 [7].