Recently, a piece of attention-grabbing news has been circulating on the internet vastly that claims Israel El Al profit soars as rivals cancel flights amid conflict. Yes, you heard it right. According to the official statement of El Al, half of the passengers who purchased tickets this year paid less than they did in 2023, refuting the criticism and claims that it was exploiting a limited number of passengers.
According to the report, on Thursday, it recorded a 150% jump in profit. The reason for this is its near-monopoly status, with many other foreign carriers canceling flights because of the war in Gaza. As a result, passengers are angry over expensive flight tickets.
Besides, El Al has announced a profitable deal with Boeing (BA.N) for purchasing up to 31 737 MAX aircraft costing $2.5 billion in order to replace the short-haul aging fleet of Boeing 737-800 and 737-900 planes.
Before October 7, the start of the conflict with Hamas militants in Gaza, Israel flag carrier reported a second-quarter net profit of $147 million, up from $59 million the previous year. Before the war, it had frequently battled to maintain profitability due to fierce competition.
Even though it increased capacity by 8%, revenue increased 33% to $839 million, and its passenger load ratio increased from 87% to 92%. However, despite the outcomes, its shares listed in Tel Aviv dropped 2%.
Customers have criticized EI AL in Israel and abroad for the high price. Having been positioned as the monopoly since the start of the Gaza war have been triggered by the Hamas attacks in Israel. Whereas El Al has profited as the rivals who have frequently canceled the flight services due to security concerns.
Half of those who purchased tickets this year paid less than in 2023, according to El Al, which denied the criticism and charges that it was exploiting a passenger base with few travel options.
We put some constraints on our price list, El Al Chief Executive Dina Ben-Tal Ganancia told Reuters.
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El Al CEO Dina Ben-Tal Ganancia told Reuters, We put some constraints on our price list. She also quoted that many passengers many passengers were booking late because of the well-known security concerns and that the demand was greater than the supply.
Along with adding flights to the US and Asia, the airline also offers paid trips to stranded individuals from Greece, Cyprus, and other locations.
So if you bought a ticket with United and now you are coming to El Al... you wont find the same price that you bought six months before, she said.
After resuming operations in June, many airlines have once again canceled flights to and from Tel Aviv, some until 2025, amid concerns of an imminent attack on Israel by Iran and its proxy Hezbollah in Lebanon.
The last few days prove to us in particular how fragile the concept of open skies is about Israel, said Ben-Tal Ganancia.
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