El Al Israel Airlines Ltd. (TASE: ELAL) has notified the Tel Aviv Stock exchange that it is extending the suspension of passenger flights until June 30. The carrier suspended passenger flights in March after Israel closed its border to combat the Covid-19 pandemic.
At the same time, the airline's employees have been informed that their unpaid leave has been extended until the end of July, making it unlikely that there will be any passenger flights next month either.
El Al says it will continue to operate cargo flights, manly between China, Israel and Western Europe as well as occasional 'rescue flights.' El Al has flown rescue flights bringing passengers home from as far afield as Latin America and Australia. More recently, El Al has been operating an average of three passenger flights each week from London and Paris as well as passenger flights from Hong Kong, Bangkok, New York, Houston and Los Angeles.
The airline had a 'going concern' warning attached by the auditors to its 2019 financial results and is in protracted talks with the government for a $400 million loan, which is dependent on the implementation of a streamlining plan and shedding at least 2,000 of its 6,000 employees.
Published by Globes, Israel business news - en.globes.co.il - on June 8, 2020
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