El Al Israel Airlines Ltd. (TASE:ELAL) today unveiled its new price list, which contains fare price reductions on tickets of regular tourist flights of between 7%-15% for short and medium distance destinations, and 14%-30% on longer flight destinations. The lower price tickets are a result of a 40%-65% reduction in the fuel surcharge.
According to the new price list, the fuel surcharge on a ticket to nearby destinations such as Athens will fall from $144 to $50, while to medium distance destinations such as Paris, London and Moscow the fuel surcharge will fall from $234 to $100. On flights to North America, the fuel surcharge will be $200 instead of $332 and to the Far East and South Africa the fuel surcharge will fall from $412 to $200.
The fuel surcharge reduction combined with an overall lowering of prices means that tickets to New York will be lowered by 23% from $1,429 to $1,099. El Al also has special offers including tickets to New York for $749 and to London for $549.
In addition, El Al is looking to attract young flyers with tickets that are 10%-28% cheaper than current ticket prices to destinations that are popular with young travelers.
El Al CEO Haim Romano said that the new price list represented a strategic step for the company. He added, "If oil prices had not fallen, we could not have lowered our prices and would even have been forced to cancel flights in order not to have suffered losses. In the present situation the profit will be a double one - for both the company and the passenger. We are committed to these prices while the price of oil and the foreign currency exchange rate remain more or less at the current level."
Published by Globes [online], Israel business news - www.globes-online.com - on January 18, 2009
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