El Al Repays State Loan, Considers Dividend Distribution

El Al recently announced that after fully repaying the state loans totaling $45 million, the restriction period on dividend distribution has been advanced by one year from 2026 to 2025. The company stated that no decision has been made regarding the distribution of dividends for the profits of 2025, and any such decision will be announced in an orderly manner.

According to the new agreement with the state, starting from 2025, El Al can distribute dividends subject to the following restrictions:

In 2025: The company can distribute a dividend that does not exceed 30% of the net profit for that year, including a dividend announced in 2026 for 2025.

In each of the years, 2026-2028: The company can distribute a dividend that does not exceed 40% of the net profit for that year, including a dividend announced for the previous year.

The implication of this change is that the company can start distributing dividends one year earlier, with a different restriction gradient between the years 2025 to 2028. As stated, a decision regarding such distribution has not yet been made.