El Al: From Near Bankruptcy to Aviation Dominance Amidst War

Israel's El Al Airlines emerged as a dominant player in the aviation sector following challenges during the recent conflict, leveraging its monopoly-like status and strategic expansions. As peace returns, El Al aims to maintain its position despite rising foreign competition and past criticisms over pricing.

After narrowly avoiding bankruptcy, El Al Airlines has established itself as a key figure in Israel's aviation industry, thanks in part to its dominance during a prolonged period of conflict. The airline now faces the task of sustaining this position as international competitors are returning.

The recent ceasefire with Palestinian group Hamas has encouraged foreign airlines to resume flights to Israel, albeit with limited frequency. This gradual recovery offers El Al a window to consolidate its market share. To differentiate itself, the company is undergoing a fleet renovation, including the acquisition of new aircraft models like the 787 and 737Max.

El Al's pricing strategies during the conflict faced criticism, yet the airline also received commendations for its continued operations under challenging conditions. Financially, the airline thrived due to increased demand, with profits soaring thanks to limited competition. However, analysts predict these gains may diminish as market conditions normalize and rivals return.

(With inputs from agencies.)