Israel's air transport in crisis - Losses this year could reach $200-240 million

Israel’s air travel sector is in crisis. Despite a fragile ceasefire with Iran that went into effect on April 8, fighting against Hezbollah continues, with drone attacks targeting Israel and the IDF responding with strikes in southern Lebanon. In April, just 471,000 passengers passed through the main international airport, Ben-Gurion Airport near Tel Aviv, about a quarter compared to April 2025, when approximately 1.83 million passengers traveled to and from the airport. Currently, only 21 airlines operate at Ben-Gurion, including four Israeli ones. In December, there were 60, while before October 7, 2023, there were over 100 airlines.
Industry sources warn that 2026 could be a year of fewer flights, but very high demand could lead to further price increases. After the 12-day war with Iran in June 2025, the sector was able to recover more quickly thanks to a ceasefire. In July 2025, passengers doubled compared to the previous month, reaching 1.67 million, and in August they increased to 2.2 million.
This time, "there is a deadlock" that risks being prolonged. About 20 airlines are scheduled to resume flights to Israel in May. However, some have postponed their plans. Lufthansa Group airlines have scheduled flights for June 1, but with further cancellations possible depending on the security situation. As for North America, Delta Air Lines, United Airlines, American Airlines and Air Canada have announced that they will not return before September. Some airlines, such as easyJet, have not yet set a return date, while others, such as Ryanair, have removed Israel from their destinations.
Industry officials estimate that losses for the Israel Airports Authority this year could reach $200-240 million. For airlines, losses are estimated at tens of millions of dollars, as bookings have already fallen in early 2026 due to fears of war with Iran.
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