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How did El AL gain a monopoly during the Israel-Hamas War?

Critics have accused El Al of price gauging, as some customers have struggled to book tickets for prices anywhere near what they booked before the war. El Al has had a record-breaking past year, with its share price rising 173% as the Israel-Hamas War has caused cancellations from other airlines, giving El Al near monopoly status on many routes. The airline's 2024 Q2 net profit was $147 million, far and away from $59 million a year ago. El Al has introduced some price caps on its flights through the end of November, setting maximum prices aimed at helping customers continue to afford tickets. However, these prices are still much higher than what many El Al flyers are used to, leading to the question of why El Al can't cap prices at lower levels. El Al has struggled to handle the massive increase in demand for its tickets as the Israel-Hamas war has left many feeling that El Al is the only reliable airline to fly with.

Original article source: https://www.jpost.com/business-and-innovation/article-828792
Source Id: 2024-11-543618900

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