American Airlines drops out of Israel: No profit

American Airlines is cancelling its money-losing service to Israel, as of January. The company’s only US-to-Israel service, a daily flight from Philadelphia to Tel Aviv was originally operated by US Airways before the merger with AA in 2013.

 

In an employee newsletter, American said that “we lost more than $20 million in the past year alone” on the flight, which has been operating since 2009. An AA spokesman told the Philadelphia Inquirer that “At the six-year mark, we have yet to turn a profit on is route.”

 

The route was Philadelphia-based because the city was USAir’s main international hub, but was never able to successfully compete with flights by El Al and United from New York City. 

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