The CEO of Economic Airlines, Ryan Air, Michael Olyer, announced that the company began to “lose its patience” towards the security situation in Israel, hinting that the company’s aircraft may be withdrawn from Ben Gurion Airport and transported them to alternative European destinations.
“I think we have begun to lose our patience with the situation in Israel … trips from Tel Aviv and to them become a burden, and if these security turmoil continues, we will be frankly we will prefer to turn the planes to another place in Europe,” Oliri said – during a call with analysts – after announcing the financial results of the company.
The company had suspended its flights to Israel earlier this month, after a Houthi missile fell near Building No. 3 at Ben Gurion Airport. According to Oliri, the closest possible date for the resumption of flights will not be before the beginning of next June.
Decreening in the atmosphere and increasing economic pressures
These threats come at a time when the company faces a 16% decrease in its profits during the fiscal year ending on March 31, as profits amounted to 1.6 billion euros (about 1.74 billion dollars), affected by a decrease in ticket prices by 7%. However, the company expected to compensate for the loss this year by increasing prices with the support of high demand.
During the same period, Ryan Air transferred a record number of passengers of 200 million passengers, with expectations that this number will rise to 206 million this year, making Israel a sensitive market, but not necessary in light of continuous turmoil.
Other files threaten stability
In another context, Oliri pointed out delays in receiving aircraft from Boeing, as well as fears of customs duties that US President Donald Trump might impose on aircraft exports to Europe. He explained that the company is considering transferring delivery operations to Britain instead of Ireland, to avoid possible fees by 20%, given that London signed a separate trade agreement with Washington.
Despite some improvement in Boeing’s delivery, Olieri said, “We have fixed prices in our contracts with Boeing, so the issue of fees will be their responsibility, but we will work with them to find ways to circumvent them.”
Ryan Air, which is the largest European agent of Boeing, puts more pressure on the Israeli government, at a time when it suffers from a decline in investor confidence and escalating anxiety in the civil aviation sector.
