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# ISRAEL: Israir Group Bond Interest Rises to 5% After A330 Purchases Increase Leverage
- URL: https://insideaviation.news/israel-israir-group-bond-interest-rises-to-5-after-a330-purchases-increase-leverage/
- Published: 2026-10-22T09:00:00.000Z
- Updated: 2026-10-22T09:00:00.000Z
- Description: TEL AVIV, Israel: Israir Group bondholders receive 5% interest on series A bonds instead of the contracted 4.75% after the equity to net balance sheet ratio fell below 17%. The ratio breach stems from the purchase of two Airbus A330s for USD 85 million financed externally.
- Author: Inside Aviation News
- Tags: Israel, Tel Aviv, New York, Finance, Israir, A330-200

TEL AVIV, Israel

- Israir Group bondholders have received 5% interest on series A bonds instead of the contracted 4.75% after the equity to net balance sheet ratio fell below 17%.
- The ratio breach stems from the purchase of two Airbus A330 aircraft for USD 85 million financed externally.
- The two A330-200s entered revenue service on the Tel Aviv-New York route after receiving all required approvals including from the Federal Aviation Administration (FAA).
- Israir Group posted H1 revenue of USD 250 million against USD 273 million in the prior year period.
- Passenger numbers fell to 640,000 from 825,000 year on year.
- The carrier recorded a net loss of USD 32 million in H1, of which USD 26 million is attributed to direct impact from the conflict with Iran.
- Jet fuel costs added USD 11 million to expenses while foreign exchange movements added a further USD 11 million.
- Israir Group expects the interest step-up to remain until the Q3 report is published.
- Recovery measures for H2 include approved Ministry of Finance grants of USD 4 million plus USD 4-8 million under negotiation, a joint loyalty club with Rami Levy projected to contribute USD 3-5 million, seasonal fare increases and two additional wet-leased aircraft.
- Israir Group targets 3 million passengers and USD 1 billion revenue in 2027, with the New York route expected to contribute 200,000 passengers.

**Sources:**

- [Bizportal](https://www.bizportal.co.il/capitalmarket/news/article/20045555?ref=insideaviation.news)