Arkia CEO Reveals Cyprus Route is Most Profitable, Notes Business Class Boom
Translated & summarized from Ice by baba
Arkia CEO Oz Berlovich revealed that the Cyprus route is the airline's most profitable due to low risk and high potential. He also noted a significant increase in Israelis flying business class, at least doubling in the last decade, attributing it to rising living standards and ego. Berlovich described the business class passengers as diverse, encompassing "all of the people of Israel."
The story in 6 lines · by baba
- Cyprus is Arkia's most profitable route, offering the best risk-reward balance, according to CEO Oz Berlovich.
- Demand for business class among Israelis has at least doubled in the last five years compared to the previous period.
- Berlovich stated that "every little Fisher" now buys a business class ticket, reflecting increased spending.
- A business class ticket costs three times as much as an economy ticket, equating to three economy fares.
- The CEO attributed the rise in business class travel to increased living standards and personal ego.
- Arkia CEO Oz Berlovich spoke on the "The Bulldog" podcast on Channel 7.
Cyprus is Arkia's most profitable route, according to CEO Oz Berlovich, who described the destination as offering the most attractive balance between risk and potential success. "Our most profitable route is Cyprus. It's the route with the lowest risk and the highest chance," Berlovich stated in a "The Bulldog" podcast on Channel 7. This revelation prompted questions about why Arkia would open flights to New York, Japan, and Thailand instead of expanding its Cyprus operations further. Berlovich attributed this to the intense competition on the Cyprus route, with Arkia, Israir, El Al, Tus, Bluebird Airways, and Cyprus Airways already operating, and Ryanair, EasyJet, and additional charters expected to join. In contrast, he noted only five airlines fly to New York.
Berlovich also observed a significant shift in Israeli passenger behavior, particularly a surge in demand for business class. He reported that the number of Israelis flying business class has at least doubled in the past five years compared to the previous five. "Today, sorry to say, every little Fisher buys a business class ticket," he remarked, highlighting the increased willingness to splurge. The price difference is substantial, with a business class ticket costing three times that of an economy ticket, meaning three economy tickets equal one business class ticket in terms of revenue.
When asked about the profile of these business class travelers, Berlovich linked the trend to rising living standards and personal "ego." He explained that once someone experiences business class on a long-haul flight, they are unlikely to return to economy. He broadly described the business class clientele as "all of the people of Israel," noting a diverse mix of passengers across various airlines, including Delta, United, El Al, and Arkia.
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