El Al profits soar amid foreign airline exits in Israel

In the wake of the Hamas attack, El Al, Israel's national airline, has seen a significant increase in profits due to the exit of many foreign airlines from the Israeli market. The airline has raised its ticket prices, which has led to public outrage and an investigation by competition authorities. El Al has been the only airline operating flights with anti-missile systems, effectively creating a monopoly in the market as over 100 foreign airlines suspended their routes due to safety concerns and high insurance costs. During the initial months of the conflict, El Al reported record earnings, with first-quarter profits reaching $80.5 million, a stark contrast to the $34.4 million loss from the previous year. The second quarter saw even higher earnings of $147.4 million, further intensifying public discontent as many Israelis abroad found the fares unaffordable. The airline's representatives argue that the pricing system is misunderstood, stating that higher prices are necessary to maintain lower fares for some routes. El Al has also expanded its services, including flights on the Sabbath for the first time since 1982, to accommodate reservists and military operations. However, the airline's pricing strategy has drawn criticism, especially as it continues to benefit from public funds and tax exemptions despite its profitability. The situation has left many travelers frustrated, particularly those unable to book flights far in advance due to the high demand and limited availability. As El Al's share prices have surged by 66% this year, the airline faces a dilemma in balancing profitability with public sentiment. The ongoing conflict and the absence of foreign competitors have allowed El Al to dominate the market, but this has come at the cost of public goodwill, which is rapidly diminishing as citizens express their dissatisfaction with soaring ticket prices.