The temporary “Al -Al” monopoly achieves record profits amid the travel crisis to Israel economy

The Israeli airline “Al Ala” recorded record net profits of $ 545 million in 2024, approximately 5 times its profits in 2023, which amounted to $ 116 million, according to a report published by “Times of Israel”.

These unprecedented profits came as a result of the almost complete monopoly of the company on trips between Israel and North America, after foreign airlines stopped their flights to Tel Aviv amid the escalation of the war with the Gaza Strip, which was followed by tensions that escalated greatly with Hezbollah in southern Lebanon.

Market monopoly and high prices

“Al -Al” benefited from almost absolute domination of flights between Israel and North America, as it acquired 97.5% of this market, with a full rate of flights of 96%.

The company’s revenues increased to $ 3.4 billion, an increase of 37% over 2023, which enabled it to reduce its net debt from $ 1.6 billion to only 75 million dollars.

But this monopolistic control may not last long, according to the report, as the minor Israeli airlines, such as Israel and Arkia, are preparing to launch their own flights to North America in 2025, and many international airlines announced the resumption of their flights to Israel with the decline in regional tensions.

Accusations of exploiting the crisis

Al -Al faced accusations of exploitation and raising prices during the war period, as the prices of trips to Israel have multiplied at times after October 7, 2023.

But the company’s executive president, Dina Bin Tal Ganantsia, defended pricing policies, saying that the average increase was only 14% for each passenger in 2024, adding: “We faced complex national and commercial challenges, but we have proven our ability to deal with them successfully.”

The return of foreign airlines threatens the “high”

With the return of relative calm after the ceasefire with Hamas and Hezbollah, many international airlines announced the resumption of flights to Ben Gurion Airport in the coming months.

Among the American airlines, United Airlines will resume its services to Israel on March 15, while the “Delta Airlines” will restart its line between Tel Aviv and New York on April 1, while “American Airlines” did not specify after an appointment to resume its trips.

Despite the standard profits, the future of the “high” is not guaranteed, as with the return of competition, the company may find itself in the face of a sharp decline in its market share, which will directly affect its profits, especially with the return of foreign airlines that offer more competitive options and lower prices for travelers.