El Al has reported record earnings in the third quarter of 2024, benefiting from a near-monopoly on flights to and from Israel amid the ongoing war in Gaza and regional security tensions. The airline posted $1 billion in revenue from July to September, a 43% increase from $696 million during the same period last year. Profits soared to $187 million, up nearly 260% from $52 million in 2023. El Al’s strong financial performance comes as many major international airlines have suspended routes to Tel Aviv due to security concerns. U.S. carriers like Delta, American Airlines, and United Airlines have halted flights indefinitely, leaving El Al as the sole operator of direct routes between Tel Aviv and North America. This disruption has resulted in a severe seat shortage and skyrocketing airfares, with El Al’s planes operating at 94% capacity, up from 88% last year. El Al’s current pricing ranges from $799 to $1,900 for North American routes, while European destinations like London and Paris are priced between $353 and $880. However, passengers booking closer to their travel dates face even higher prices. El Al’s financial success has drawn criticism, with many accusing the airline of price-gouging during a national crisis. The company denies these claims, claiming that it has capped ticket prices to prevent excessive costs. “We make every operational effort to increase the supply of seats as much as possible,” said El Al CEO Dina Ben Tal Ganancia. “But for the moment, we don’t have any substantial capacity to add additional flights, and foreign airlines need to resume operations to stabilize passenger demand.” Smaller Israeli carriers, Israir and Arkia, are preparing to enter the North American market to ease the seat shortage. However, these airlines face regulatory hurdles and logistical challenges, including sourcing wide-body aircraft and crews willing to stay overnight in Israel. “Even if they succeed, it will not lead to a dramatic change,” Ben Tal Ganancia noted. (YWN World Headquarters – NYC)
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