Economy Minister Nir Barkat and El Al Israel Airlines agreed on Wednesday to apply fixed fares to El Al flights to four destinations until the end of 2024. This is intended to enable Israelis to reach international air hubs, as the war between Israel and Hamas prevents foreign airlines from flying to Israel.
El Al will offer round-trip tickets to the international travel centers of Larnaca for $199, Athens for $299 and Vienna and Dubai for $349 until the end of 2024. The prices apply to all seats on the flights, the airline said.
The agreement was reached at a meeting on Wednesday morning, and there were mixed reports in the Israeli media about what El Al is getting out of the deal. Globes reported that the agreement would prevent the Economy Ministry from intervening more in the airline’s pricing, and Walla reported that the fixed prices would replace some taxation of the company.
El Al stated that the agreement contained no conditions for them and was made for the benefit of customers.
The Economy Ministry did not respond to requests for comment on the terms of the agreement.
As part of the agreement, prices for remaining seats on the airline’s flights will also be reduced until the end of September, the company said, adding that it will continue to adhere to flexible cancellation conditions.
The meeting followed criticism of El Al’s prices, as the cancellation of other airlines’ flights to Israel gave the company a quasi-monopoly position and caused demand for the airline’s flights to explode.
In a quarterly report published last week, El Al reported a jump in profits of almost 150 percent. Net profit in the second quarter was $147 million, compared to $59 million in the same period last year. The company’s sales also rose by 33 percent.
Increase flights to key destinations
The airline said it would continue to work on expanding flights to Athens and Larnaca, which it has defined as its two main destinations.
“The idea is to enable Israelis to leave Israel and reach international airports around the world,” the company said, explaining that Israelis could then fly from these hubs all over the world.
The company stressed that every week 1,000 international flights leave Larnaca, 2,500 flights leave Athens, 4,000 leave Vienna and 8,500 leave Dubai.
Steven Scheer/Reuters contributed to this report.
