El Al cancels Ukrainian routes

CEO Elazar Shkedi: The skyrocketing of jet fuel prices, security costs, and the global economic crisis forced the decision.

El Al Israel Airlines Ltd. (TASE: ELAL) is cancelling two more unprofitable routes, to the Ukrainian cities of Odessa and Dnepropetrovsk. The last flight to Odessa will depart on December 6 and the last flight to Dnepropetrovsk will depart on December 8.

In August, El Al cancelled its route to Sao Paolo, two years after inaugurating it.

El Al CEO Elazar Shkedi said, "The sharp and continuous rise in fuel prices requires El Al to focus on its destinations as other airlines are doing." He added that the weekly flights to Odessa and Dnepropetrovsk did not fit in with El Al's strategy to fly several flights a week to key destinations.

"The unprecedented skyrocketing of jet fuel prices, security costs, and the global economic crisis forced the decision. The decision was taken as part of an adjustment of operations and streamlining measures to cut El Al's costs in order to optimize its fleet of plans and destinations. This reality forces us to reevaluate the feasibility of every destination and every flight," said Shkedi.

In a separate development, a dispute has arisen between El Al and the Israel Security Agency over the strictness of security arrangements for the carrying of thousands of Nigerian pilgrims to Israel beginning in late October, El Al said, "We want to carry out the flights to bring the Nigerian pilgrims to Israel and we hope to obtain all the necessary permits for this as soon as possible."

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