Israel’s war on Hamas has led to boycotts against its writers, cut off cooperation with its scientists and possible arrest warrants against its officials. But nothing has made Israelis feel more isolated than the massive drop-off on flights to and from the country.
Direct routes to dozens of major cities — Washington, D.C., San Francisco, Toronto, Hong Kong, New Delhi — have been suspended, reducing cargo’s reliance on passenger flights as well as face-to-face business meetings.
Of the 20 airlines that dominated the pre-war market, only Israeli companies remain. According to the airport authority, the number of flights and passengers at Ben Gurion Airport fell by 40 percent in the first nine months of 2024.
The biggest impact came from the loss of North American airlines — Delta Air Lines Inc., United Airlines Holdings Inc., American Airlines Group Inc. and Air Canada. Although Ben-Gurion does not have a missile landing site, companies say they fear for the safety of their passengers as rockets are fired from different directions, and crews are unwilling to spend the night in Tel Aviv.
With the war now in its 14th month and with no end in sight, Israel’s high-tech leaders, facing a decline in investors and business activity, are looking for solutions. One, due to launch in January, is called Airtec, and aims to launch charter flights to and from the US three times a week.
“Our project is simple,” said Ori Hadomi, former chief executive of Mazor Robotics and veteran entrepreneur, who is helping to build the project. “We will lease planes from Israel to the US and back, including all the logistics. To do business you need to meet partners face-to-face. You need to cultivate relationships.”
Another has come from a small firm called Air Haifa, which now flies to Cyprus six times a day with a half-hour hop, facilitating connections with the rest of the world.
Troubled flights began 13 months ago when Hamas attacked southern Israel, joined by Hezbollah in the north, resulting in thousands of rockets. Israel launched retaliatory wars in Gaza and Lebanon and exchanged fire with Iran.
Foreign airlines dropped it, then started it, then stopped it again as military action waned and died down. Airlines are postponing their returns for weeks or months, and in some cases indefinitely.
It has overtaken Israeli aviation by more than a decade since the 2013 “Open Skies Reform” that brought dozens of airlines to operate in Israel as the country gained wealth and sophistication.
This coincides with Israel’s improved regional relations, including diplomatic relations with several Arab countries. Much of this has been reversed. Turkey, once a hub for flights to Tel Aviv, is boycotting Israel. There is no longer direct access to Jordan, Egypt, Morocco or Bahrain or dozens of cities in Greece, Italy and Eastern Europe.
The biggest beneficiary is El El Israel Airlines, the national flag carrier, which is adding flights and avoiding cancellations. The world’s best-performing airline this year, it doubled its market share year-on-year to 46 percent in September 2024 and posted a net profit of $228 million in the first half of the year. , which is eight percent more than this year. First half of 2023
In its third-quarter financial results published on Wednesday, Al Al said it maintained an 86.4% market share for transatlantic flights. It reported net income for the quarter of $185.2 million, more than triple its net in the same period last year.
Its reliability has come at a heavy price for consumers.
“Flight prices go up by 50 to 200% and in some cases by 300 to 400%,” says Hanni Sobol, CEO of the Diesenhaus Group, a travel agency, adding that seats are scarce.
Shipping costs are also affected. Amir Shani, owner of Israeli air forwarder Amit and head of the Air Forwarders Association, says the reason for this is the increased reliance on passenger planes to move cargo. Before the war, more than half of the cargo in Israel was on passenger planes.
“Airline costs have increased by about 250 per cent. This has made it very difficult to beat inflation,” says Shani.
Supply disruptions have tripled delivery times, said the CEO of a dental implants factory in northern Israel, who spoke on condition of anonymity to discuss business matters. He said this has reduced sales and hurt the company’s cash flow.
International airlines say one thing keeping them away from Israel, especially during wartime, is a law that requires them to compensate passengers and offer replacements for canceled or delayed flights.
Many airlines, represented by local law firm FBC & Co., say in a position paper that when alternative flights are so limited, their prices go up.
“Foreign airlines are forced to deal with potentially significant economic consequences, and in the absence of clear changes in relevant legislation, they have little incentive to resume flights to Israel,” the group told lawmakers. is lacking.”
It is feared that some airlines may not return. “If there is no advance planning for the summer season, the planes will be diverted. Therefore, the Israeli aviation industry will have to avoid at least another year of decline,” the group told parliament. Therefore, bold and urgent action must be taken.”
