El Al Bets on 787-10 as Fleet Renewal Deepens

Thanks to strong relations with the US, it comes as no surprise that Israeli carrier El Al has opted to add more Boeing 787s to renew and expand its long-haul fleet. But a switch from the -9s to the larger 787-10 was not immediately anticipated, although it makes perfect sense given the fleet requirements. The deal is structured in layers.

The deal is notable in the current tariff environment — an Israeli carrier deepening its relationship with Boeing at a time when Chinese carriers are being frozen out of Boeing deliveries. Every confirmed Boeing order from a non-Chinese operator right now has added strategic weight.

El Al said on April 16 that it has amended the April 22, 2024, purchase agreement with Boeing for three 787-9s plus six options. The three -9s will be swapped for 787-10s, with a fourth -10 confirmed from the previous options. All four will be delivered between 2030 and 2032. Purchase costs at list prices are some $1.5 billion, including conversion costs for swapping the smaller -9 for the bigger and more expensive -10.

The airline still has options for six more Dreamliners to be delivered between 2033 and 2035, but hasn’t specified the model. That also applies to the engine selection. All 17 Dreamliners in the fleet are powered by Rolls-Royce Trent 1000s, but, like many other operators, El Al has experienced durability issues that have significantly reduced maintenance intervals. Three out of El Al’s four 787-8s are grounded for maintenance, although it is not clear if this is engine-related.

For an airline ordering more Dreamliners, resolving the Trent 1000 durability question is not optional — it is a prerequisite for the fleet strategy to work.

Leased and owned

All 787-8s are owned by the airline, while eight out of 13 787-9s are on lease. El Al has two more leased 787-9s joining soon. The latest aircraft on order will be purchased outright. Once completed, El Al will operate 28 Dreamliners and can grow this number to 34 if it exercises the remaining options.

Explaining the need for the new aircraft, El Al said in a statement: “The expansion of the aircraft fleet as detailed above is part of the Company’s long-term strategic plan to increase production capacity, rejuvenate and increase the aircraft fleet, while improving profitability and deepening the customer experience. In addition, the aforementioned move is expected to increase the seat supply, in light of the expected increase in passenger traffic at Ben Gurion Airport in the coming.”

Fleet renewal is underway, as the airline plans to replace six 777-200s, the oldest of which is over 25 years old, and the youngest is near 19. Once they have been phased out, El Al’s long-haul fleet will consist solely of Boeing 787s. The 787-10s will probably seat around 310 passengers, which is almost identical to the 313 seats in most of the current 777-200s. The capacity match is deliberate — El Al is replacing metal, not changing its network strategy. Moreover, the 787-10 is the most fuel-efficient model in its category.

Replacements for the medium-haul fleet of 22 Boeing 737-800s and eight -900ERs were announced in August 2024, when 20 MAX 8s, -9s, and -10s, plus 11 options, were announced.

Lower net profit

El Al reported a net profit in 2025 of around $410 million, an EBITDAR of around $947 million, and revenues of some $3.5 billion from 6.9 million passengers. The results were impacted by cost increases and by Operation Rising Lion, the attacks from Israeli air forces on Iran in June. CEO Levy Halevy said on February 25 that he hoped the situation at Ben Gurion Airport would stabilize again this year and return to pre-COVID levels.

The conflict that has disrupted Gulf carriers and reshaped Middle East aviation has paradoxically strengthened El Al — as the dominant carrier serving Israel, it absorbed demand that couldn’t route through Gulf hubs. Traffic to and from Israel is highly inelastic, and traffic willingly pays a premium to fly El Al when other airlines cancel flights. Moreover, Israel is highly unusual in that the number of Israelis traveling abroad each year exceeds the population.

He made that remark three days before Israel and the US launched more attacks on Iran, which resulted in counterattacks by Iran and the temporary closure of Tel Aviv’s airport. The financial effects of escalating fuel costs on El Al will be confirmed at the Q1 results presentation.

Long-term, El Al targets revenue growth to $4.0 billion by 2030, including 8 to 10 percent from ancillaries, and carrying 7.6 million passengers.

Bottom Line

El Al is building for the decade beyond the conflict. The 787-10 conversions signal confidence in long-haul demand growth, the all-Boeing commitment signals geopolitical alignment, and the $4 billion revenue target by 2030 signals that the airline has used wartime disruption as a platform rather than an excuse. The Trent 1000 durability question is the one shadow over an otherwise compelling fleet story.

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