In an extraordinary move, El Al CEO Dina Ben Tal Ganancia has announced a groundbreaking initiative to drastically reduce airfare for Israeli travelers. As the world grapples with skyrocketing travel costs, Ben Tal Ganancia has emerged as a bold leader, determined to make international travel accessible to all Israelis at a time when most carriers have canceled service to Israel over the looming threat of Hezbollah and Iranian airstrikes.
This monumental decision came on the heels of a high-stakes meeting with Minister of Economy and Industry Nir Barkat, where the top brass of Israel’s leading airlines—El Al, Israir, and Arkia—were summoned to confront the steep rise in airfares that has put a strain on Israeli families and businesses alike.
Making Air Travel Cheaper For Israelis
The meeting, which took place in the heart of Tel Aviv, was nothing short of historic. It kicked off with Israir CEO Uri Sirkis discussing the dire state of air travel with Minister Barkat, setting the stage for what would become a landmark agreement. However, it was Dina Ben Tal Ganancia who stole the show. In a move that stunned industry insiders and seemingly will be a delight to Israeli consumers who have been faced with unreasonable travel costs as the few carriers who are still flying into Israel have raised their prices in light of the high demand, Ben Tal Ganancia agreed to slash prices for return flights to four strategically vital destinations: Vienna, Austria ($349), Athens, Greece ($299), Larnaca, Cyprus ($199) and Dubai, UAE ($349). These prices, dramatically lower than the current market rates, will be available until the end of 2024.
פרסום ראשון: שר הכלכלה ניר ברקת סיכם עם מנכ"לית אל על על הגדרת 4 יעדים בינלאומיים שימכרו במחיר אחיד ונוח. אחד היעדים שסוכמו טיסת הלוך - חזור ללרנקה (קפריסין) תימכר ב-199 דולר@Dean_Fisher_
— החדשות - N12 (@N12News) August 21, 2024
But Ben Tal Ganancia’s plan goes beyond mere price cuts. These flights represent new additions to El Al’s already extensive schedule, signaling the airline’s unwavering commitment to not just meeting, but exceeding customer expectations in these challenging times. Furthermore, El Al has pledged to reduce fares on other routes where seats remain available—a rare but welcome occurrence given the surging demand from Israeli travelers eager to explore the world. El Al has been focused on modernizing its fleet with Boeing 787 Dreamliners and improving its overall service. The changes that have been made have bore fruit as the airline has gained critical acclaim from travel and tourism associations as well as airline trade groups.
Minister Barkat’s Strategic Triumph
This agreement is not just a win for El Al—it’s also a significant political victory for Minister Barkat. In a masterful display of leadership, Barkat has managed to strike a delicate balance between market forces and consumer protection. By securing these unprecedented fare reductions, he has ensured that Israelis can continue to travel for both leisure and business without the need for heavy-handed government intervention in El Al’s pricing strategies.
Ben Tal Ganancia, a visionary leader who has been at the helm of El Al during one of its most transformative periods, echoed Barkat’s sentiments. "We are committed to expanding the supply of seats and enhancing our flight schedule," she declared. "This initiative will enable us to offer tens of thousands of seats at affordable, predictable prices, ensuring that Israelis have uninterrupted access to key international hubs that connect to every corner of the globe."
El Al’s Meteoric Financial Performance: A Testament to Resilience
El Al’s financial performance in recent months has been nothing short of awe-inspiring. At the start of the week, the airline sent shockwaves through the financial community by reporting record-breaking results for the second quarter of 2024. El Al posted an astonishing $147 million profit—an 84% increase from the first quarter—cementing this as the "best quarter in its history." With foreign airlines increasingly pulling out of Israel due to geopolitical tensions and concerns over potential Iranian aggression, El Al stands ready to dominate the skies, maintaining its upward trajectory well into the third quarter.
Under the astute leadership of controlling owner Kenneth Rozenberg, El Al has undergone a remarkable transformation. Once teetering on the brink of collapse during the COVID-19 pandemic, El Al has now become a financial powerhouse. In the first half of 2024 alone, the airline witnessed a staggering 40% surge in revenue, reaching nearly $1.6 billion, with a net profit of $226 million—a tenfold increase compared to the same period last year.
Rozenberg’s gamble on El Al is paying off in spectacular fashion. The company’s share price has soared by an incredible 66% since the beginning of 2024, with a market capitalization of NIS 2.4 billion. Over the past three years, El Al’s share price has skyrocketed by 120%, a testament to the airline’s extraordinary recovery from the darkest days of the pandemic.
Yet, this success was far from guaranteed. Just four years ago, as the world was paralyzed by the COVID-19 crisis, El Al’s future hung in the balance. The airline faced the very real threat of bankruptcy, with auditors attaching a grim "going concern" qualification to its financial reports. It was only through a lifeline from the Israeli government—amounting to hundreds of millions of dollars—and substantial capital injections from Rozenberg that El Al was able to weather the storm and emerge stronger than ever.
El Al pressed into offering cheaper fares to 4 destinations: After the chiefs of Israel's airlines were summoned to meet Minister of Economy Nir Barkat, El Al CEO Dina Ben Tal Ganancia agreed to reduce some ticket prices. https://t.co/WVaZuKIVQ1 Globes pic.twitter.com/ImUcpAz6PX
— Jewish Community (@JComm_NewsFeeds) August 21, 2024
Looking to the Horizon: El Al’s Future in the Global Aviation Industry
As El Al continues its meteoric ascent, the airline is poised to play an even more pivotal role in connecting Israel with the world. With the promise of affordable air travel and a rock-solid financial foundation, El Al is not merely surviving—it’s thriving. The airline is setting new standards for the global aviation industry, proving that for Israel’s national carrier, the sky is not the limit—it’s just the beginning.
Under the leadership of Dina Ben Tal Ganancia, El Al is not only navigating the challenges of today’s aviation landscape but also shaping the future of air travel for Israelis. Her bold moves to reduce airfares amidst global price hikes demonstrate a commitment to both her passengers and her country, ensuring that El Al remains a beacon of national pride and a leader in the global skies.
