El Al's chief executive, Elyezer Shkedy, tendered his resignation last Sunday and will step down after his successor is in place, the company said in a statement.
Shkedy, a former Israeli air force chief, has led the national carrier for four years, has said privately that he is leaving the company simply because he has reached his limit there.
"The company board of directors regretted to hear Shkedy’s announcement that he intends to resign," said El Al chairman Amikam Cohen. "Shkedy’s special personality, leadership and contribution to the El Al company deserve special appreciation, and were expressed in all spheres of activity in a company as complex and challenging as this one."
Shkedy said he will continue to lead the airline "wholeheartedly, as I have done so far" until a new CEO is chosen and trained.
The surprising resignation comes less than a week after El Al launched UP, its low cost airline to Europe. The low cost carrier is part of an effort led by Shkedy to increase the competitiveness of El Al in the wake of the government's Open Skies reform which is due to come into effect in 2014.
El Al's third quarter financial report for 2013 showed a record profit of 57.9 million U.S. dollars, which reflects a 55 percent raise compared to the third quarter of 2012.
