El Al Israel Airlines Ltd.

Investor Presentation • Aug 10, 2023

WELCOME

Investor Presentation

Disclaimer

This presentation has been prepared by EL AL Israel Airlines Ltd. (the Company) for the sole purpose of providing information about the Company, its operations and financial results.

The information contained in the presentation is provided for convenience only and does not constitute a stand-alone basis for making investment decisions nor does it constitute a substitute for data collection and analysis. Moreover, this presentation does not constitute a recommendation, offer or solicitation for the purchase or sale of securities of the Company nor does it constitute a substitute for independent judgment or independent collection and analysis of data on each investor.

The information and figures provided in the presentation are partial and presented in a condensed form for convenience only. This information should be read along with all details, descriptions, clarifications, assumptions, qualifications, and assessments as well as the description of risk factors included in the Company's 2022 Periodic Report and in the Company's Financial Statements as of March 31, 2023 and June 30, 2023. In any event of inconsistency between the information contained in the presentation and the information included in the financial statements of the Company, the information included in the financial statements will prevail.

Some of the data contained in this presentation consist of forecasts and/or assessments based on data available to the Company as of the date hereof, as well as estimations and expectations of the Company, all of which constitute as forward-looking statements within the meaning defined in the Securities Law, 5728-1968. The Company has no assurance that such forecasts and/or assessments will fully or partially materialize, as they depend on or may be affected by third parties and external and macroeconomic factors on which the Company has no or little influence; changes in market and environmental conditions; regulatory changes or the realization of any of the Company's risk factors. The Company is not obliged to update or change such forecasts and/or assessments in order to reflect events or circumstances occurring after the date of this presentation.

The presentation also includes estimates and other statistical data based on external sources which have not been independently verified by the Company, and the Company is therefore not responsible for their correctness.

EL AL in Numbers

Q2 2023 Business Results Profit before taxes

*ASK VS. 2019

Taking Off on All Profit Measures Q2 2023

Q2 2023

Revenue Surpassed the 2019 Benchmark and Continues to Rise

Revenue for Q2/23 is approx. 108% compared to Q2/19 with capacity (ASK) of approx. 87% respectively

Significant Potential-Working to increase the scope of capacity to 100% and above

Continued Stability in Booking Demand (\$M)*

Maintaining high demand is evidence of the brand's strength (\$M) Booking*

*Booking in terms of sales - do not constitute revenue, but bookings that have been ticketed and will be recognizedas revenueafter the flight.

The figures are the forecast gross sales data, including port taxes attributed thereto, and including sales of vouchers, credits and frequent flyer points. In certain cases the sales of flighttickets can be changedby thecustomers as a change/credit.

Summary of Results For Q2/2023

Improvement in All Parameters

Consistent strong profit indicators resulting from strong demand trends and maintaining efficiency.

Operating profit improvement highly above finance expense Covid burden – resulted with best Q2 bottom line since IPO

Summary of Results For Q2/2023

Efficiency measures

Total Revenue/ EMP \$K

Flight hours/ EMP (HRS)

Operating Expenses ex. Fuel (\$M)

Operating expenses (E.g. Fuel) % from turnover decreased compared to 2019, mainly due to a headcount decrease

12

*EBITDAR - Earnings Before Interest, Taxes, Depreciation, Amortization and Rent/Restructuring Costs

Operation Cashflow

	17
7)	1

Operating cashflow trend was impacted by last year's customer behavior which was reflected in the "out of Covid outbreak" in terms of sales

Long term view – Stable and consistent strong cashflow allows the company to fulfil its business plan and strategy

Cashflow From Operating Activities (\$M)

Strategy in Action

Fleet Expansion & Renewal

Fleet Expansion and Renewal

Wide Body 787 Dreamliner

• Launched the 1 st Retrofit aircraft – Dreamliner experience

Watch movie

(4-7) • Narrow-body aircraft replacement program and expansion

19

IATA Environmental Assessment

SAF Delivery Flight

A strategic partnership with one of the major airlines of the United State

Expansion and Development the route network

Expanding the route network

DUBLIN, TOKYO, MUMBAI, DELHI, FORT LAUDERDALE

Developing partnerships with foreign airlines

destinations through Sun Dor

ISTANBUL, PORTO, NAPOLI, ZAGREB, PAPHOS, MONTENEGRO, LJUBLJANA

Expansion of activity in the core routes BANGKOK, PHUKET, TOKYO, MIAMI

Customer Experience and Marketing Awards

Soaring high Financial focus that fuels and accelerates our growth strategy

2028 Financial Targets

Achieving consistent & substantial profitability over time

Strengthen capital

structure for positive

equity

Robust & continuous cash flow

Maintain efficient cost structure

Significant increase in aircraft fleet

ASK and aircraft growth over the years

Aircraft forecast as of the last day of the year. Passengers aircraft only, ASK in billions.

* Years 2023-2028 Estimation

* Years 2023-2028 Estimation

Clear and ambitious targets

Appendix

Main Financial Data in USD Millions

	Q2/23	Q2/19	Q2/23 vs Q2/19	Q2/22
Revenue Turnover	629.8	583.8	8%	516
Operating profit (loss) (\$M)	89.6	20.4	339%	9.
Operating cash flow profit (EBITDAR)	163.3	99.1	65%	6 .6
Percent of turnover	26%	17%	53%	13%
Profit (loss) before tax	58.8	3	-	(16.7)
Free net cash flow after CAPEX	25	46		99
Cash flows from operating activities	117.1	11	6%	162.8
ASK - millions	65516	75532	)13%(	55 89
Percentage of passenger activity (compared to 2019)	87%	1%		73%
Net profit (loss)	58.9	1		15

EL AL Passenger Traffic

Consistent increase in the volume of activity compared to 2019

RPK ASK ASK - Percent of 2019

The Company's Aircraft Fleet Passengers' aircraft only

Body	Fleet	Number of Aircraft	Number of Seats for Aircraft Type (Average)	Number of Seats in Fleet	Average Age	Owned	Leased
Wide body	787-9	12	271	35252	4.9		8
	787-8	4	238	952	2.7	4	-
	777-200ER	6	279	1567	20.2	6	-
Narrow body	737-8NG	16	169	2,702	18.9	6	10
	737-900ER	8	175	15	8.6	8	-
	Total	46	217	9,980	12.2	28	18

Operating Indices

EL AL & SunDor	Q2/2023	Q2/2019	Q2/2022
Revenue passenger kilometers (RPK) - in millions	5,654	6,277	4,478
Available seat kilometers (ASK) – in millions	6,516	7,532	5,489
Passenger load factor (PLF) – in percentages	86.8%	83.3%	81.6%
Flight hours (on passenger flights) – in thousands	41.5	45.3	34.4
Tons of airborne cargo - in thousands	14.4	19.2	16.5
Revenue ton kilometers (RTK) – in millions	87.5	115.1	1

Consolidated Statements of Financial Position

in USD millions

Assets	306.2023	31.12.2022	Liabilities and Equity	306.2023	31.12.2022
Cash and cash equivalents	271	283	Loans	15.81	15182
Short-term deposits	31	15	Lease liabilities	835	9.9
Trade receivables and other receivables	288	2 9	Liabilities in respect of deferred revenue	925	821
Fixed and other assets	156.5	15636	Other liabilities	636	623
Right-of-use leased assets	672	72.	Equity (capital deficit)	)3. (	)3 7(
Other assets	307	285
Total	3517	35188	Total	3517	35188

EL AL's Market Share

^*Source of data - Ben Gurion Airport Reports

Fuel Prices

Cent per gallon of jet fuel (average price) Dollar per brent barrel (average price)

*Source of data - Ben Gurion Airport Reports

Effect of the NIS/USD Exchange Rate

* Average rates