Eli Rosenberg, son of businessman Kenny Rosenberg, who through his son owns the controlling interest in… El Al Israel Airlines Ltd (level:Ellal)He converted 10% of his options in the airline into shares. The exercise price of the options is NIS 2.10 per share, while the stock price opened on Sunday at NIS 8.55 per share, four times the exercise price. “On paper” Rosenberg made a profit of NIS 90 million by exercising the options.
Rosenberg had about 140 million options (Series 2) on the eve of exercising some of them, meaning he had a potential additional profit of about another NIS 800 million “on paper.” After exercising the options, he now owns 49.5% of El Al shares worth approximately NIS 2 billion, more than double the value of his investment in the company.
El Al’s stock price fell by 5.8% last Thursday amid investors’ expectations that the Gaza ceasefire will lead to the return of foreign airlines to Israel (several airlines announced this last week). Increased competition for flights abroad, if it occurs, is expected to erode the exceptional profitability achieved by El Al last year.
An increase of approximately 150% over last year
The share price of El Al, run by CEO Dina Ben Talal Janansia, has jumped almost 150% over the past year and is up 7.8% since the beginning of 2025. The market believes that the delay in the return of foreign airlines to Israel is a reason that has a positive impact on El El Al, especially on the profitable routes to the United States, where El Al currently has a 90% market share, are the routes where prices are very expensive.
In its report for the third quarter of 2024, Elal estimated that the results of the fourth quarter would be very good, if lower than the third quarter, in which the company once again broke all records, with profits of $187 million on revenues of more than $1 billion. .
In October-November 2024, El Al increased its market share at Ben Gurion Airport and was responsible for transporting more than 50% of passengers.
“Even if foreign airlines start returning in April, it will happen gradually and that means that the results in the first quarter will be very strong as well, and in the second quarter as well we must remember,” Itai Lipkowitz, CEO of Horizon Capital Markets, told Globes last week. “The global aviation market is currently very strong, there is a shortage, demand exceeds supply, and capacity is full. This can also be seen in the wonderful reports published by the American airline Delta. Weak, and foreign airlines would have returned to Israel a long time ago.”
Published by Globes, Israel Business News – en.globes.co.il – on January 19, 2025.
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