Israel: Introduction of capped fares with El Al, a step towards boosting international traffic

TheEl Al to cap fares to four destinations, including Larnaca and Athensmarks a strategic move to revitalize the international air traffic from Israel. With attractive round-trip tickets, this measure aims to boost the tourism and support the local economy by stimulating travel. In a delicate economic context, this innovative approach responds to the air transport crisis by making flights more accessible. Until the end of 2024, El Al plans to increase flight frequency, making affordable international travel possible for all.

In an ambitious effort to support the revival of the air sector hard hit by the recent economic turbulence, Israel made a strategic decision to introduce capped rates for some of its international routes. The national airline, El Alis at the heart of this initiative, seeking to revitalize tourism and attract more visitors to and from the country. The measure follows a series of economic reforms designed to boost the travel sector and strengthen Israel's competitiveness on the world stage.

Strategic destinations at reduced prices

El Al, in cooperation with the Israeli government, has chosen to cap fares on four key destinations: Larnaca, Athens, Vienna and Dubai. The aim is to attract a steady flow of travellers by offering attractive round-trip prices, such as $199 to Larnaca and $349 to Vienna and Dubai. Aligned with national economic objectives, this strategy could, according to the authorities, boost tourism and encourage cultural and commercial exchanges.

A favorable geopolitical and economic context

These tariff measures come at a time when Israel's foreign policy, reshaped since January 2024, is seeking new alliances and greater visibility on the international stage. Israeli diplomacy has stepped up its efforts to forge closer ties with regional and international partners, which could create a climate conducive to increased air traffic. Domestically, efforts to improve air infrastructure, such as the installation of latest-generation EDS3 scanners by 2023, also testify to this commitment to improving the overall travel experience.

Technology and innovation: at the heart of El Al's strategy

Israel, often referred to as the "Startup Nation", has always relied on innovation. El Al is no exception, and continues to explore new ways of optimizing its operations. The introduction of capped fares is just one part of a wider plan that includes increasing flight frequency and incorporating the latest technological advances to ensure passenger comfort and safety. El Al plans to offer some 80,000 regulated tickets by the end of the year, which could make a major contribution to its revitalization mission.

Expected impact on the economy and tourism

El Al's relaunch of international air traffic is part of a wider vision for the country's economic recovery. Thanks to these attractive fares, Israel hopes to increase tourist arrivals and stimulate other sectors such as the hotel, restaurant and retail industries. Economic experts believe that these initiatives will bear fruit in the medium term, contributing to a more robust recovery of Israel's GDP and a diversification of the country's economic activities.

State of air traffic recovery through El Al's capped fares

Destination	Capped price (USD)
Larnaca	199
Athens	299
Vienna	349
Dubai	349
Objective
Boosting tourism and air traffic
Context
Reduced cancellation indemnities during wartime
Availability
80,000 tickets by the end of 2024

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