El Al Eyes Widebody Freighter Boost
El Al Israel Airlines is reworking its strategic plan with an eye toward adding a widebody freighter to its fleet, signaling a new phase in its cargo expansion efforts. Although the carrier has not specified which aircraft type it is targeting, investor documents released this week indicate a planned increase in the B777 fleet beginning in 2028. This potential acquisition would supplement the airline’s current freighter capability, which includes a B737-800(BCF) that supports its cargo operations.
In addition to the widebody freighter prospect, El Al is set to enhance its operational flexibility by wet-leasing three passenger aircraft and one cargo aircraft until at least 2030. These wet-leases will run alongside the planned introduction of new in-house aircraft, giving the carrier more leeway to adjust capacity and meet seasonal or market-specific demand. The combination of leased and owned aircraft is expected to allow El Al to maintain a robust network and remain competitive in both passenger and cargo segments.
El Al’s strategic blueprint also involves some fleet rationalization moves. In July 2024, the airline signed an agreement with a foreign company to purchase a B777 for USD7.3 million, not for immediate use in service, but with the specific intent to dismantle it. The parts and engines from this acquisition will be used to bolster the spares inventory for its existing fleet. Presently, El Al operates four B777-200ERs powered by Rolls-Royce Trent 800 engines, a critical component of its long-haul operations. Augmenting the spare parts pool is seen as a prudent step in ensuring high availability and reliability for these complex aircraft.
Further consolidating its fleet, El Al disclosed the purchase of a B737-800 that it had previously leased for the past twelve years. Although the details of the transaction, including the identity of the aircraft and the purchase price, were not disclosed, the move represents a commitment to transitioning from leased assets to owned assets where it makes financial and operational sense. This purchase aligns with the carrier’s broader efforts to optimize its fleet structure and control operational costs in an increasingly competitive market.
El Al ended 2024 on a strong financial note, reporting a net profit of USD545 million on revenues of approximately USD3.4 billion. The airline carried 6.6 million passengers during the year with an average load factor of 94%, underscoring its solid market position and robust demand in the region. The carrier operates a diverse fleet of 45 aircraft, which includes sixteen B737-800s, eight B737-900ERs, four B777-200ERs, four B787-8s, twelve B787-9s, and one B737-800(BCF). In addition, the airline has substantial orders on its books, including twenty B737-10s and seven B787-9s, either purchased directly from manufacturers or arranged through dry-lease agreements with lessors.
By planning to expand its freighter capabilities with a widebody addition, alongside a carefully balanced mix of wet-leased and owned aircraft, El Al is positioning itself to better serve both its passenger and cargo operations. This strategic revamp not only aims to secure a competitive edge in a challenging aviation market but also reinforces the carrier’s commitment to delivering reliable and efficient service as it continues to navigate the post-pandemic recovery and evolving global trade dynamics.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com