El Al Israel Airlines Ltd. (TASE: ELAL) has announced that it is extending the unpaid leave of its employees until July 31. Sources at the airline say that it has written off the summer, its peak season.
El Al is not hopeful after Prime Minister Benjamin Netanyahu announced earlier today that he will only open 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. 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.
Earlier this week Arkia Airlines Ltd. extended the unpaid leave of its employees until July 31.