El Al has agreed to fix the prices of tickets to four destinations that will act as hubs to and from Israel until the end of 2024, in a bid to offset travel issues caused by widespread suspension of most flights to Tel Aviv due to the war against Hamas in Gaza and the ongoing conflict with Hezbollah in Lebanon.
The fixed economy-class prices for a roundtrip ticket to Larnaca, Cyprus will be $199; to Athens, Greece $299; to Vienna, Austria $349; and to Dubai, United Arab Emirates $349.
Some 80,000 tickets will be available through the end of the year, according to a statement from the national carrier.
El Al Israel Airlines Ltd. announced last Thursday a record profit of $147.4 million in the second quarter of 2024.
The airline garnered revenue of $839 million in the April-June period, 33% more than the $630 million it earned in the same time period in 2023.
In the first quarter of 2024, Israel’s flagship carrier recorded a then-record profit of $80.5 million from revenue of $738 million.
The airline also announced the signing of “the largest agreement in its history,” for up to 31 Boeing 737 MAX aircraft at a cost of $2.5 billion. The planes will replace El Al’s 737-800 and 737-900 fleet, with delivery beginning in 2028.
The company has been criticized for raising its prices after Oct. 7, as many international airlines have suspended service to the Jewish state.
American Airlines announced that it is suspending flights to Israel through late March. Delta Air Lines extended its suspension of Tel Aviv flights through Sept. 30 from Aug. 31. United Airlines has suspended service indefinitely.
what about New York Los Angeles Miami now that would actually help
It pains me to write this but El AL are taking advantage of the situation in Israel. There’s no need to increase prices if there’s high demand now that other airlines are suspending their flights. It’s simple 101 economics!!!
Morally you can argue. But economically you’re 100% wrong. Even there’s higher demand you raise prices to make higher profits. Say you have 100 seats available and there’s 150 people which want them, you up the price to the amount only 100 would be willing to pay…
Ticket price follows demand. When the demand rises so does the price. I believe that is what we are seeing here. It is in fact the free market. This is certainly not perfect, but it is the system in which we operate. Usually to the detriment of El Al’s profits. Now is a rare example when the free market is suddenly not to their detriment, due to an absence of the competition you noted, which increases the demand for El Al’s product.