Published on : Wednesday, December 6, 2017
El Al Airlines struggles in giving the better services to the people and in last year, it had earned as the world’s least dependable airline in January, as more than half its flights were delayed last year.
But now in 2017, it has improved after management came to terms with the pilots. But the damage to the brand is done by having late flights, bad hospitality and minimal services to the passengers.
Israel’s flagship airline reported that a 30 percent plunge in profit last quarter, two weeks after Chief Executive Officer David Maimon said he would step down.
It was the fifth straight quarter showing a worsening bottom line. The shares of EI AI Airlines have plunged 50 percent in the past year, the worst return of 75 major airline stocks.
El Al Airlines says that it is sticking to its business plan in order to turn things around. The company is pushing the rollout of its upgraded fleet; opening new routes and finalizing a merger with an Israeli low-cost airline that could help the company compete with discount carriers.
And yet El Al Airlines is struggling when it should be soaring. The global airline earnings will reach a record in 2018, the International Air Transport Association said Tuesday.
The fuel costs of the airlines are about half of what they were in 2014, as the tourism to Israel is projected to set a record and relative quiet prevails between Israel and its Arab neighbours.