Israeli airline El Al in ’emergency mode’ since start of war

JERUSALEM, Nov 30 (Reuters) – El Al Israel Airlines (ELAL.TA) has operated in “emergency mode” since the start of Israel’s conflict with Hamas militants last month, the company said on Thursday as it reported a drop in third-quarter profit owing to a one-off gain a year earlier.

El Al is one of the only airlines flying to and from Tel Aviv after most foreign carriers halted services partly because of insurance reasons. Israel’s government has backed insurance for domestic carriers to enable them to keep flying.

“These days we have a deep national responsibility towards the people and the country,” said CEO Dina Ben-Tal Ganancia. “We quickly adapted ourselves to emergency mode and made sure to maintain a stable and active flight schedule while taking care of passengers’ safety and security.”

The Israeli flag carrier has made a number of changes since the conflict started, including an increase in flights to and from North America, Thailand and to London and Paris while suspending flights to some other destinations.

Recently added flights to Istanbul, Sharm El-Sheikh and Marrakesh, which are among those that have been suspended, could be scrapped entirely if demand from Israeli tourists does not bounce back after the war, it said.

The airline said that consumer behaviour has changed, with more customers making last-minute bookings rather than advance reservations months ahead. El Al has also boosted cargo flights to transport essential equipment to Israel.

While demand for vacation travel has evaporated, people are still travelling to visit families, it said. Overall, it does not expect a significant drop in passengers in the fourth quarter.

The airline reported earnings of $52 million for the three months to Sept. 30. That compared with $67 million a year earlier, boosted by a $38 million one-off gain from the partial sale of its frequent-flier club.

Revenue grew 11% to $696 million, higher than pre-pandemic levels in 2019, and the percentage of seats occupied edged up to 88.1% from 87.5%.

Shares in El Al were down 0.4% in afternoon trading in Tel Aviv.

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