El Al Israel Airlines Ltd. (TASE: ELAL) has announced that it is extending the suspension of passenger flights until July 31. This was no major surprise after the airline announced yesterday that it was extending the unpaid leave of its employees until July 31.
In its notification to the Tel Aviv Stock Exchange (TASE), El Al said that while Israel continues to bar foreigners from entering and requires Israelis returning from abroad to undergo 14 days self-isolation, it will continue its suspension of flights.
El Al is not hopeful of a resumption in August after Prime Minister Benjamin Netanyahu announced yesterday that he only plans opening Israel’s borders between Greece and Cyprus on August 1, if the rate of Covid-19 infections does not climb.
90% of El Al’s 6,300 employees were put on unpaid leave in March when passenger flights were first suspended. The airline is mainly operating cargo flights with occasional passenger flights, according to demand.
El Al is deep in debt and is under pressure to fire at least 2,000 employees, reduce its fleet and the number of destinations it flies to in order to receive a government bailout.