March 11, 2020 / 7:56 AM / 21 days ago

Israel's El Al sees large financial impact from quarantine order

JERUSALEM, March 11 (Reuters) - El Al Israel Airlines said on Wednesday the government’s directive requiring anyone entering Israel from abroad to remain 14 days in quarantine will have a significant adverse effect on the company.

Israel’s flag carrier said at this stag, it was unable to assess the extent of the impact and that it plans to continue to make adjustments to its operations and network of routes in accordance with demand for flights.

El Al said in a regulatory filing in Tel Aviv it expects to cancel many more flights.

On Sunday, El Al, which already suspended routes, cancelled flights and delayed the launch of new routes to Chicago, said it had expected a revenue decline between January to April of as much as $160 million.

It had projected an impact of up to $90 million in the first quarter, with the revenue drop partly offset by lower expenses.

On Monday, Israel ordered anyone arriving from overseas to self-quarantine for 14 days as a precaution against the spread of the virus.

El Al, which has already announced a major round of layoffs, has requested government aid and is in talks with the Finance Ministry. Its shares have slid 33% so far this year. (Reporting by Steven Scheer; Editing by Tova Cohen)

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