Rising prices, bringing hope: What do consumers think of Israel's El Al airline? - opinion
The sky-high ticket prices that jumped since last October dramatically contribute to the poor perception of El Al more frequently.
EL AL, the quasi-national carrier, once again posted record profits for the first quarter of this year. (photo credit: YOSSI ALONI/FLASH90)ByHAROLD GOLDMEIEREl Al, Israel’s flag-carrying national airline, is prospering from the Hamas war, recording its best first and second financial quarters of the fiscal year in the firm’s history. That is not as cringe-worthy as it seems at first glance. The company’s revenue in the first quarter of 2024 was 48% higher than the first quarter of 2023, with profit topping $80 million. In the second quarter, it broke another record, posting a net profit of $147.4 million.
When other major carriers erratically canceled flights and ultimately ghosted Israel after Hamas invaded, El Al swiftly added routes. Planes were packed with passengers and cargo. Ticket prices doubled and tripled as weeks turned into months. The company CEO unabashedly told the press, to paraphrase, “that is what happens when the competition folds under pressure.”
My students in our Entrepreneurship class at Touro College Jerusalem surveyed a small sample of the English-speaking public at random in May to gain insights into the public persona of El Al under stress.
El Al is a cultural icon, as well as a commercial venture. A blue-and-white Star of David is the El Al symbol on every plane’s tail; the airline is woven into the fabric of the nation. Hostages in Entebbe? Divert El Al jumbo jets to extract them. Refugees fleeing Ethiopia? Build clandestine runways in the Sudan desert, rip out the seats in El Al jets, and pack men, women, and children on the floor for flights to their biblical homeland. Rescue plans have sobriquets like Operation Solomon, Operation Magic Carpet, and Operation Ezra and Nehemiah. El Al sent a plane to bring captured Nazi mass murderer Adolf Eichmann from Argentina to Israel for trial.
It is the only airline equipped with onboard missile defense systems. Its airplanes did not fly Friday night until sundown Saturday night for 40 years until the state’s rabbis permitted Sabbath flights to bring home soldiers and military cargo from abroad after the Hamas invasion of Israel. The company is under relatively new management; kudos to them for keeping Israel’s skies open to the public, essential cargo flowing into Israel, and turning a profit. Here are highlights and lowlights from our findings.
An El Al flight takes off at the Ben-Gurion Airport, near Tel Aviv, August 25, 2024 (credit: YOSSI ALONI/FLASH90)El Al profited, despite offering discounts to passengers rushing to Israel to rejoin military service units and a flurry of diplomats flying to foreign capitals. El Al became a lifeline for supplies when Red Sea ships became Houthi targets, carrying cargo for the war effort and commercial goods for the public. Despite fewer tourists, El Al upped its market share to 80% in the fourth quarter of 2023, compared to 22% before October 7.
In the end, record revenue and profits come down to supply and demand; i.e., ticket prices soared because El Al safely flew when other airlines canceled their Tel Aviv service, citing safety concerns and sky-high insurance premiums. Perhaps competitors who cancel their flights and ghost Israel will be enticed to return to Israeli skies. That might lower ticket prices, increase tourism, and speed up deliveries of essential cargo.
How does El Al match up to other airlines?
My students each asked travelers between 21 and 55 years of age 12 questions about flying to Israel and El Al, specifically. They found that El Al is the most popular airline among Israeli respondents when buying tickets, with an average favorability rating of 7.5 out of 10. This coincides with other studies, for instance, as reported by Flight-report, that claim El Al gets an average 8 out of 10 rating by frequent fliers in peacetime. Students ranked respondents’ suggestions that the airline improve seating comfort, in-flight entertainment, and customer service.
El Al’s support services rate poorly (5.5/10) by American fliers. The sky-high ticket prices that jumped since last October dramatically contribute to the poor perception of El Al more frequently than it does of other carriers. Perhaps travelers see this as gouging in tough times; rightly or wrongly, we must see the long-term impact on El Al’s reputation.
Younger respondents, wrote one student, often prioritize affordability and comfort, while older customers focus on service quality and loyalty perks. The breakdown applies to female respondents and male respondents, respectively. Long wait times for check-in service and misinformation from staff are particularly annoying to customers. “Despite these mixed reviews, many customers are willing to buy from El Al again, primarily due to the airline’s reliability and loyalty, especially in challenging times.”
Notable comments include fliers’ appreciation for upholding Jewish values, particularly not flying on Jewish holidays and providing kosher meals. One respondent said she got special attention from the flight crew when she was pregnant. Others noted that “El Al brought free bags to Israel for soldiers in the current Gaza war, and they “value the sense of security they experience on El Al’s flights because, for example, each flight has sky marshals with concealed weapons.”
Finally, the students suggest that El Al’s marketing ought to focus on people loyal to Israel and stop wasting marketing money on the general population. “Even in wartime, supporters of Israel have proven to be loyal and active consumers,” they said.
El Al is like British Romantic poet Felicia Dorothea Hemans’ lonely bird from “haunted places of sadness.” Israel is under siege. Our children are dying. Hostages are still in captivity. But the national airline is “soaring in a flood of gladness,” bringing hope with every Magen David landing and take-off on the tail of those lonely birds. ■
Dr. Harold Goldmeier is a teacher, business consultant, public speaker, and financial writer. The article was written with assistance from Leora Cohen, Bella Katz, and Moriah Rosenthal.
