El Al in a Financial Crisis - "Painful decisions may be required"


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.

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Oh boy. Not again.

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Oh great, another airline having problems. And the Coronavirus is getting to be a worse and worse problem as well.

You can say that again but please don’t, as it’s obvious we have something quite powerful on our plate

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That’s a whole flag carrier gone. No other Israeli airline could completely replace El Al in its size if it goes.
Arkia? They’re a bit small…
Israir? They’re small too.

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Well they’re not gone yet. I like El Al for the fact it managed to draw a 747 in the skies on FR24 and I actually like their livery color scheme.

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No, not my favorite airline! I hope the decisions aren’t too devastating and that they are able to recover quickly. But since the outbreak doesn’t seem to be slowing down, nothing looks promising.

Agreed, there’s no way they’ll go bankrupt because of this.

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This is their network from Tel Aviv. Asia isn’t their largest destination. I wouldn’t be surprised to see them ground a few aircraft because of the loss in Asia capacity, but likely nothing close to bankruptcy. Unless, they’ve already been struggling.

Every airline flying into the region will take a hit from this virus. It depends on how much they’ve been flying into Asia and their financial situation. (RIP STARLUX)

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Such a shame. I was looking forward to seeing El Al in Australia :(

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…But their Melbourne test flight’s still scheduled.

Unless you’re looking at the X I wrote over Melbourne on the map. I don’t even remember why I drew that.

That’s to bad, they just went to SFO… wonder what’ll happen to that

Sorry worded it wrong. I was hoping

How is every other airline more reliant on these destinations coping just fine? They must have been in an already financially unstable position, because the only thing affected would be forward bookings, not current passengers. Also coronavirus is only a recent thing…

The biggest threat is not the loss of capacity, but the massive amount of refund requests coming in. Airlines are cash-intensive businesses, a few months of passengers asking for refunds at the same time can cause some pretty severe cash flow problems.

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I don’t want El Al to stop operating. Not only I love the color scheme on their planes, I also like their fleet and the airline itself. I hope El Al can recover from the crisis.

Hopefully they stay afloat and make it out of the situation soon. This Coronavirus is really starting to hurt airlines now.

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It was terrible news as soon as airlines had to cancel routes to Asia. They are betting on the routes they have chosen to rely on for sustained revenue to be operable.

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Yes, coronavirus is only a recent thing, but it is quickly spreading to new countries. I don’t know if there are any infected people in Israel or not, but we’re dealing with something completely unheard of when it comes to this outbreak.

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Primera also had a lot of routes. But they went down.

Major airlines have gone down before practically overnight. Well this is highly unlikely, it is still very much possible.

Primera Ar was different because they rapidly expanded long-haul flights and didn’t have the available aircraft so they needed to wet-lease aircraft. The cheap prices didn’t help either.