AZ is in panic mode.
This is the high, high, season for flights from Israel to Europe. Generally, in July and August I can expect to shell out $600 TLV-MXP.
AZ is offering them now for $389. Moreover, if a family flies, the two adults pay that price and the first child pays $292 and the second $195.
If I want to fly to any other European country on AZ, the price is only $20 more.
AZ itineraries, for the past few years, from TLV-MXP-USA have been about $300 less than Delta fares -- even though in both cases I would be on AZ metal to Italy and Delta metal to the US.
AZ is trying to avoid bankruptcy but instead of improving service and keeping decent prices it is keeping its poor service and cutting prices. I don't think this formula is going to help it.