El Al suspends all flights

Jul 1, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

El Al’s troubles continue, and it’s increasingly unclear if the Israeli airline is going to survive the coronavirus pandemic.

The carrier had already all but suspended service through the end of July, but it still planned to operate a few special passenger and cargo flights this month.

Sign up for the free daily TPG newsletter for more aviation news.

However, Israeli media reported July 1 that talks between the airline’s management and its pilots unions had stalled, leading the company’s executives to recall all airplanes to their bases.

El Al slashed much of its workforce and took other drastic measures to stay afloat amid the coronavirus demand slump, but the airline’s financial situation remains precarious.

Related: These airlines have stopped offering first class due to the pandemic.

“The company cannot continue to hemorrhage,” Avi Edri, chairperson of the transport workers union at the General Federation of Labor in Israel told Globes. “The company has an obligation to minimize damage to itself, and as part of that, to its employees. So on the one hand it’s tough to see activity being reduced, but on the other, if the airline is losing money, it’s better to halt activity and wait for better times.”

Read more: How far can airborne COVID germs really spread on a plane?

El Al has been in talks with the Israeli government for a bailout, but it still needs its employees and unions to agree to whatever deal is ultimately reached.

The news comes just one day after AeroMexico asked for bankruptcy protection in a U.S. courtroom. Aeromexico is the third Delta Air Lines partner to restructure, following Virgin Australia and LATAM.

Related: More than half of global airlines could ‘die’ without aid

Additional reporting by Edward Russell.

Featured photo by Alberto Riva/The Points Guy.

Chase Sapphire Preferred® Card

WELCOME OFFER: 80,000 Points

TPG'S BONUS VALUATION*: $1,600

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 toward travel when you redeem through Chase Ultimate Rewards®.
  • 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 80,000 points are worth $1,000 toward travel.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Intro APR on Purchases
N/A
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.