No lower Israel-US airfares on the horizon

El Al Israel Airlines Ltd (level:Ellal) remains the only airline operating direct flights between Israel and North America. In November, 11% of passengers traveling through Ben Gurion Airport traveled to and from the United States on El Al flights.

There appears to be a diminishing possibility that El Al will face competition before April on its US routes, putting downward pressure on airfares. But even if Delta Air Lines resumes flights to Israel as planned in April 2025, many of its tickets are more expensive than the equivalent El Al tickets.

Israeli technology leaders’ plans to charter planes and flight crews to the United States have not yet advanced, while Israir and Arkia appear unlikely to launch flights to New York anytime soon. Israir has been deterred by the Knesset Economics Committee’s reluctance to approve an amendment to the Aviation Service Law, which would exempt airlines from the need to compensate passengers for canceled flights while the war continues.

Israir had planned to lease planes and offer 15,000 seats on flights to New York, but in the wake of the Knesset’s stonewalling, CEO Uri Sirkis told Globes that “the current decision undermines Israir’s business plan.” It’s not entirely out of the question. (operating)”. flights to the United States), but it significantly increases the risk when it comes to extreme events.”

To make matters worse, there are few flight options available with Air France, Lufthansa Group and Italian company ITA extending the suspension of flights to Israel even after the ceasefire between Israel and Hezbollah. Just yesterday, ITA announced that it would extend the suspension of flights to Israel until the end of January 2025.

American Airlines and United Airlines have said they will not resume flights to Israel until further notice, but Delta Air Lines is scheduled to resume flights to Ben Gurion Airport in April 2025. In Israel’s aviation industry, concern is growing that continued flight cancellations could be extended despite Donald Trump’s entry into the White House may change the picture.

But even Delta’s resumption of flights to Israel in April does not appear to be meeting demand and is cutting prices significantly. Globes randomly checked three dates on Delta’s website. At the end of April, a return ticket from Tel Aviv to New York on Delta cost $1,112, compared to $1,449 on an El Al flight. In early May, a return ticket on Delta becomes more expensive – $1,462 compared to $1,364, and in June a return ticket on Delta costs $1,732, while a return ticket on Al Al costs $1,424.

Some relief is that since the signing of the ceasefire between Israel and Lebanon, the price of the shekel has risen by 5.3% against the US dollar, which means that the Israeli currency is at its strongest level in 10 months against the dollar, translating into savings on airline tickets for travelers. Israelis. .

Published by Globes, Israel Business News – en.globes.co.il – on December 10, 2024

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