Calco7 Via JetPhotos
Amid the outbreak of 2019-nCoV El Al has been forced to cut routes to Beijing and Hong Kong as well as reducing capacity for flights to Thailand. This is on top of grappling with worldwide reduced travel demand due to the virus. With the current market climate, reports have come out of an email sent to employees from the CEO of El Al, Gonen Usishkin, which stated: “difficult days ahead, and it is possible that we will be required to take dramatic steps and make painful decisions.”. This came after El Al notified the Tel Aviv Stock Exchange that they are in a financial crisis partially as a result of the Corona Virus outbreak.
In my opinion, is worrying to see how the Corona Virus is hindering the aviation industry, but I do not see the effect on El Al being bankruptcy. I think this is a temporary setback but one that will have to be weathered none the less.