Flights between Israel and long-haul destinations like the US and Thailand have become prohibitively expensive with foreign airlines staying away leaving El Al Israel Airlines Ltd. (TASE:ELAL) with a virtual monopoly. According to El Al's third quarter report, the airline had a 86.4% market share of flights between Israel and North America and a 70.6% market share of flights to south and east Asia.
But following the ceasefire with Hezbollah and the return of many foreign airlines to Israel (although not US airlines), there are more options for connection flights to North America and Asia at considerably cheaper fares than El Al.
There are currently 22 foreign airlines flying to and from Ben Gurion airport out of over 80 that were operating before the war. But among those resuming flights in the next few days are Spanish carrier Air Europe, which will offer five weekly flights with good connections to South America and Blue Bird which will offer three weekly flights to Rome.
Hungarian low-cost carrier Wizz Air, which will at first only offer flights to Cyprus but from January other European destinations like London. Wizz Air's website has return tickets to London in February for just $232 compared with El Al's fares of $500 and of course from London there are an array of cheaper return tickets to North America.
Much lower than El Al
Next week Polish carrier Lot Airlines resumes flying to Israel. "Globes" found connection flights in February to New York via Warsaw, with a wait of 1 hour and 55 minutes in the Polish capital, for $619 return, about half of the $1,200-1,300 for an El Al Tel Aviv-New York return ticket in economy class. On some dates in February, El Al's economy class tickets to New York are already sold out.
On long haul flights to the east, Israel has been served well by UAE carriers. Etihad Airways is set to increase its number of weekly flights between Tel Aviv and Abu Dhabi from 10 to 19 and with six weekly flights operated by flyDubai, there will be 25 flights a week between Israel and the UAE, a major hub for flights to Asia and Oceania. "Globes" found a connection flight in February from Tel Aviv to Bangkok on Etihad with a five hour connection wait in Abu Dhabi on the way there, and two hours on the return leg for just $782, while El Al's tickets for Tel Aviv - Bangkok flights start at $1,300.
Of course connection flights are far more inconvenient than direct flights. They add significant amounts of time to the journey and can become burdensome if the first flight is delayed and the second flight missed - especially if the second flight is with a different airline. Moreover, booking with foreign airlines has the risk that the security situation will suddenly escalate and flights will be canceled, while El Al and other Israeli airlines have provided a reliable schedule throughout the war.
Extending cancelations
There was a reminder of this fragility earlier this week when flights were briefly halted at Ben Gurion airport as the IDF successfully intercepted a missile fired at Israel by the Houthi rebels in Yemen. Following the incident Air France extended its suspension of Israel flights until January 9. Despite the ceasefire Lufthansa Group, including Swiss, Austrian Airlines, Brussels Airlines and Eurowings, as well as Italian carrier ITA, have extended their suspensions until the end of January 2025. KLM, Iberia and Air India won't be returning until at least March, and Croatia Airlines won't be back at Ben Gurion until at least May.
Of the US carriers American Airlines and United Airlines have said they will not be resuming flights to Israel until further notice but Delta Airlines is due to recommence flights to Ben Gurion airport in April 2025.
Published by Globes, Israel business news - en.globes.co.il - on December 18, 2024.
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