El Al Cancels All Flights Until Further Notice

By Kurt Stolz on 2 July 2020
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El Al Israel Airlines announced the suspension of all flights effective Wednesday after its pilots union said that its members would refuse to operate flights amidst the airline’s current financial crisis.   The carrier also ordered all aircraft to return to base as uncertainty rose as to its ability to continue to exist as an airline.

“At this stage, there are considerable doubts regarding the continued existence of the Company as an ongoing concern,” the airline said.

The airline reported a net loss of $140 million, compared to a loss of $55 million in Q1 2019, with revenue of $321 million, a 25% year-over-year decline.

“Due to the continued pandemic, there is still a great deal of uncertainty around the world as to the timing at which the industry in general, and El Al in particular, will return to regular and meaningful activity,” the airline’s CEO, Gonen Usishkin, said in a statement on Wednesday.

The airline earlier had said it as in the “advanced” stages of reaching an agreement with the Israeli government to receive aid, but the agreement still requires the acquiescence of its employees and unions.  Approximately 100 pilots currently work for the airline, while several hundred others are on unpaid leave.

(Photo: Accura Media Group)

Accura News

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