Beginning January 2016, American, and by extension US Airways, will no longer operate nonstop service between PHL and Ben Gurion Airport (TLV) in Tel Aviv, Israel. Unfortunately, PHL-TLV has not performed well since its inception. Service between PHL and TLV has been a source of pride for our airline since 2009, and this isnt a decision we made lightly. Weve operated this route year-round for six years and have never turned a profit in any year; we lost more than $20 million on this service in the past year alone. We want to give every route the chance to succeed, but no matter how much we want to serve a particular route, we have to make the right decision for our business.
Our immediate focus is to be supportive of our team members based in Tel Aviv who have earned immense respect throughout the company for their excellence and dedication. We will discuss the implications of this business decision with them separately.
The final flight to Israel from PHL will be on Jan. 4, 2016 with the last return flight departing Tel Aviv for PHL on Jan. 5, 2016. Customers can still access TLV through our joint business partner British Airways via London or through our codeshare relationship with El Al via our European gateways such as London, Paris, Madrid and Frankfurt.
Q: Will the flight be reinstated in the future, perhaps when we have more opportunity to operate the route with a different aircraft or from a different hub like MIA or JFK?
A: Well certainly continue to monitor the viability of reinstating TLV service and will evaluate future opportunities as we bring in new aircraft to the fleet and our network evolves. At this time, we do not anticipate restarting service to Tel Aviv in the near future.
Q: Why did this route work for US Airways for years but shortly after the merger, it does not work for American?
A: The PHL TLV route has never been profitable for our airline. We want to give every route the chance to succeed, andwe gave it a fair shot, but at a certain point, no matter how much we want to serve a particular route; we have to make the right decision for our business.
Q: The PHL TLV flight traditionally operates with high load factors. How can it not be making money?
A: There are a lot of different factors that determine the overall success of a route. Load factor is not the only way, nor the best way, to judge a routes performance. We also look at overall demand and the fares customers are willing to pay on that route. In the case of PHL TLV, a number of factors have resulted in poor financial performance.
Q: What will happen to customers who are ticketed on the PHL TLV service after the cancellation date?
A: American will be contacting all passengers to make alternative travel arrangements for them, or to offer a full refund. We apologize for the inconvenience that this decision will cause.
Q: What does this say about PHL as a hub? Is there enough connecting traffic for other international flights?
A: Our combined hub structure allows for each of our nine hubs to play a very important role in our overall network strategy. Looking at our international network, PHL is a prime hub for connecting customers to and from main business and leisure destinations throughout Europe and it will continue to be an important strategic hub for our partners through the Atlantic Joint Business.