Israeli flag carrier El Al’s airliner carrying Israeli and American delegates lands at Abu Dhabi International Airport, United Arab Emirates, August 31, 2020. WAM/Handout

JERUSALEM, July 10 (Reuters) – El Al Israel Airlines (ELAL.TA) has reached a collective bargaining agreement with its pilots to restore their wages to pre-COVID pandemic levels and end months of industrial action which led to the cancellation of flights.

Under the deal, which runs until 2025, wages will return to previous levels by early 2023, El Al and labor federation Histadrut said in a joint statement.

Last month, an employment tribunal rejected El Al’s request to force pilots back to work after near-daily cancellations, ordering the two sides to negotiate a settlement. The pilots were looking to hold El Al to a 2017 pay deal.

“Israeli airline pilots, including El Al pilots, have cut their salaries drastically so that the airlines can survive. Now, with the aviation industry recovering, it is time to return to the previous situation,” said Avi Edri, leader of the Histadrut transport workers. union.

El Al said in May it had reduced its first-quarter loss to $66 million from $86 million a year earlier after Israel’s borders reopened to foreign tourists and passenger numbers returned to pre-COVID levels.

Reporting by Steven Scheer Editing by Ari Rabinovitch

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