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Edited by: TJVNews.com
El Al Israel Airlines has recently experienced a remarkable financial turnaround, reporting a quarterly record profit amidst an ongoing aviation crisis. With the majority of foreign carriers not resuming full flight services to Israel, El Al has benefitted from an “unusual demand,” leading to substantial increases in both profit and revenue, according to the information provided in a May 29th report on the Times of Israel web site. However, this success has come at a significant cost to the Israeli public, who continue to face exorbitant airfares.
In the first three months of the year, El Al posted a profit of $80.5 million, a dramatic recovery from a loss of $34.4 million during the same period the previous year. As was reported by the TOI, this impressive profit growth was driven by a 48 percent increase in revenue, which reached $738 million. Compared to the last quarter of 2023, El Al’s revenue was up 9 percent, reflecting the heightened demand following the outbreak of the war with Hamas on October 7.
The sharp rise in El Al’s profitability can be attributed to the significant reduction in services by foreign airlines, particularly low-cost carriers, which have cancelled routes at the last minute due to the ongoing conflict, as was indicated in the TOI report. This vacuum left by international carriers has led to a surge in demand for El Al’s services, pushing airfares up by more than 100 percent.
El Al has faced harsh criticism for charging exceptionally high airfares during this crisis. The TOI report revealed that critics argue that the airline has taken advantage of the situation to maintain inflated prices, burdening the Israeli public. This criticism is compounded by the fact that the Israeli government has continued to provide substantial financial support to domestic airlines, covering insurance costs against war risks.
One frequent traveler based in Tel Aviv told The Jewish Voice, “I travel to the island of Cyprus on a regular basis. Before October 7th, the fare on El Al was approximately $50 since it is located near Israel. Now the price of a ticket to Cyprus is $350. Frankly, I think that is totally outrageous and I think El Al is trying to fleece the public. They know that the volume of passengers has decreased since October 7th and they figure they will make up for it by committing highway robbery.”
Dina Ben Tal Ganancia, El Al’s CEO, has dismissed allegations that the airline is exploiting the crisis. She argues that the high airfares are a result of supply and demand dynamics, as well as the necessity to reserve space for last-minute diplomatic needs, the report in the TOI said. Despite these justifications, the public remains frustrated by the soaring costs of air travel.
The reluctance of foreign carriers, particularly from the United States, to resume operations in Israel has exacerbated the situation. According to Mark Feldman, CEO of Ziontours Jerusalem, the primary reasons for this are the refusal of airline crews to stay overnight in Israel due to the war, and the higher insurance risk premiums that would need to be paid, as was explained in the TOI report. This has left El Al operating with little competition, allowing it to charge higher prices.
Feldman pointed out that despite the high costs of direct flights with El Al, cheaper alternatives exist for Israelis willing to book indirect routes. Some foreign carriers, such as Lufthansa, Swiss, and British Airways, have resumed their routes to Israel on a limited basis, providing some relief to the high demand, as per the information contained in the TOI report. Additionally, US carriers, including United Airlines and Delta Airlines, as well as Air Canada, have resumed flights to Israel since June.
Despite these developments, Feldman told the TOI that airfares for the Sukkot holiday remain extremely high, with foreign carriers matching the prices set by El Al. This indicates that even with the return of some international flights, the overall cost of air travel to and from Israel remains elevated.
El Al has reported unprecedented demand for flights during what is typically a low-traffic winter season. In the first three months of the year, the airline experienced a surge in passenger numbers relative to the seat capacity it could provide. Ben Tal Ganancia highlighted the instability still plaguing the Israeli aviation industry, largely due to the ongoing cancellations by foreign airlines, as was mentioned in the TOI report. This has left many Israeli consumers stranded and seeking last-minute solutions from El Al.
Ben Tal Ganancia emphasized the significant impact of these cancellations, describing the situation to the TOI as a “true crisis” for Israeli travelers. Many have found themselves with canceled tickets and few alternatives, often turning to El Al at the last minute to secure flights. The TOI reported that she has called on foreign airlines to resume their routes to Israel, urging them to help restore stability to the regional aviation market.
The decision of foreign carriers to limit or delay their services to Israel has had a profound impact on the aviation landscape. The primary reasons cited for their reluctance include the heightened security risks and the increased insurance premiums associated with flying to a conflict zone.
The high demand and limited seat availability are likely to keep airfares elevated for the foreseeable future. This situation underscores the need for a coordinated effort to stabilize the aviation sector, ensuring that Israeli travelers have reliable and affordable options for air travel.
Customer Dissatisfaction
Over the years, customers have witnessed a rapid decline in services provided by El Al and in the last several years customers have been weighing on policies of the airline that they believe are inherently unfair. According to the highly popular Trip Advisor web site, El Al customers voiced their grievances with the airline. In October 2023, Arthur H said, “Due to the war I wanted to cancel my flight scheduled for 10-12 to Israel. When I called on 10-10 to cancel I was told that the fee was $479. I chose a flight credit. The next morning , 10-11, my friend on the same flight, same class, was told that the cancel fee was $270. I called to cancel my flight at the $270 fee and was told that I am stuck with the credit, though I was duped with the $479 fee.
Also in October 2023, Michael of Palm Beach Gardens, Florida wrote: “My wife going to wedding. War broke out Saturday. Her flight on Sunday. El Al charged $275 to refund her ticket. Should she have gone? Shame on you El Al. WILL NEVER SPEND A PENNY ON YOUR AIRLINE. SHAME
Another El Al customer named Tim sounded off on his experiences on the airline also in October 2023. He wrote on Trip Advisor, “I flew business from New York to Tel Aviv, and economy class for my next connecting flight. Both with El Al.
Economy Class–The service is ok, but seats are very uncomfortable. Not as bad as Turkish Airlines, but pretty bad. I would not fly El Al economy class again.
Business Class–The service is better, the seat goes completely flat, but this is one of the smallest business class seats that I know. The food was average. Business Class on Qatar Airways is heaven. Business Class on El Al is functional. I would use it again, but I would prefer Qatar Airways.”
Isaac T of Israel wrote of his experiences on El Al in September 2023. “Was a national pride now a national shame. Change the timing without explication. On the port also in the plane. At least the plane personnel were kind, not the rudeness in the airport.”
On the web site known as Trust Pilot, other El Al customers also piped up with their specific complaints about airline service.
During her travels in April 2024, Sabrina Louise wrote: “I will never book via them ever again. War broke out and they refused to help and refund. Where other airlines are very fair. I will never ever deal again . You will never see my money again and I’ll make sure word of mouth is strong as well. I’ll be telling all my friends and family.”
In June 2023, Tigran wrote the following about El Al on the Trust Pilot web site. “The Worst Airline, worst customer service. I am traveling a lot and used many airlines, but this one was the Worst! They did not let me board the plane explaining that my security check will take a long time and that I was not on their “lists”. They started telling me that i came late, but the gate was still open and other people were boarding the plane. I assume they simply sold my seat to someone else and tried to come up with a lame excuse not to let me in. They just closed the gate in front of me and did move me to the next flight which was 12 hours later. I was trying to explain to them that the time for travel is important as I had to make it to my mom’s surgery, but the ticketing agents simply were ignorant. I WILL NEVER FLY WITH EL AL, NOR WILL RECOMMEND TO ANYONE TO USE EL AL.”
In January 2021, Didi Atallah wrote of El Al, “The world’s worst airline! The world’s worst airline!! I had the worst experience traveling from Milan to Tel Aviv in 2019. I requested a refund since I was forced to change seats even though I paid for an exit seat and never got the refund! I’ve since not booked a single flight with them and I will never fly El Al again!
