The Israeli air transport sector is in crisis. Although a fragile ceasefire with Iran took effect on April 8, fighting with Hezbollah continues, including drone launches toward Israel and IDF strikes in southern Lebanon. In April, only 471,000 passengers passed through Ben-Gurion International Airport near Tel Aviv – roughly one quarter of the about 1.83 million who traveled through the airport in April 2025. Haaretz reports that only 21 airlines currently operate at Ben-Gurion, including four Israeli carriers; in December there were 60, and before October 7, 2023 the number exceeded 100, according to the Israel Airports Authority.

Industry sources warn that 2026 is likely to be a year of reduced flight schedules, while high demand could drive fares up. After the 12-day conflict with Iran in June 2025, the sector recovered quickly following the ceasefire: passenger numbers doubled in July 2025 from the previous month to 1.67 million and rose to 2.2 million in August. This time, however, “there is a stalemate” that may persist. Around 20 airlines were expected to resume flights to Israel in May, including Air France, KLM, Smartwings and Iberia, but some have delayed plans. Wizz Air postponed its restart from April 25 to May 4 and then to May 12. Lufthansa Group carriers – including Lufthansa, Swiss, Austrian Airlines, Brussels Airlines and Eurowings – planned to resume on June 1, though further cancellations remain possible depending on security conditions. From North America, Delta Air Lines, United Airlines, American Airlines and Air Canada have announced they will not return before September. Some carriers, such as easyJet, have not set a return date, while others, like Ryanair, have removed Israel from their network, Haaretz reports.

Officials estimate the Israel Airports Authority could lose 600-700 million shekels this year (about 200-240 million dollars). Airlines are expected to incur losses in the tens of millions of dollars, as bookings had already fallen at the start of 2026 amid fears of a renewed war with Iran.