Suspension of Flights Causes Deep Crisis for Israeli Aviation Sector

By Al Mayadeen English

Refusing to fly over dangerous Israeli-occupied airspace, international airways are extending their suspension of flights to the area.

Non-Israeli airlines continue to postpone their flights to and from Israeli-occupied territories, significantly impacting travel to the region, Israeli daily business and economics newspaper Calcalist reported.

Notably, British Airways announced today that it will not resume its flights to Israeli-occupied airports until the end of March 2025, having halted operations at the beginning of August.

Meanwhile, the Lufthansa Group has decided to extend the suspension of its flights until November 10, following a recent assessment of the situation. This group includes Austrian Airlines, Swiss International Air Lines, and Brussels Airlines, with its subsidiary, Eurowings, also pausing flights until November 30.

Currently, only about 20 foreign airlines are operating at Israeli-occupied airports, highlighting the significant reduction in international travel options.

In the past few days, additional airlines have announced their own extensions of flight suspensions. Polish LOT has pushed its suspension until November 12, Greek Aegean Airlines until November 5, and Air Baltic and ITA until the end of November. KLM Royal Dutch Airlines is set to halt its flights until the end of December, while popular low-cost airline Wizz Air has extended its suspension until mid-January.

Unprecedented aviation crisis

Calcalist also noted that the escalating crisis in Israeli aviation, spurred by the ongoing deterioration of security, is sending shockwaves through the industry. The situation has made it increasingly difficult to export goods and import essential raw materials needed for production processes in local factories.

The sharp decline in the number of foreign airlines operating in the area has led to a drastic reduction in passenger flights and severely impacted air cargo transportation. Last year, air transport costs surged by approximately 200%, and alongside rising prices, the availability of flights has diminished significantly, particularly in the last two months.

Additionally, shipments of goods and raw materials intended for Israeli companies have become stuck in airports worldwide for weeks. Local exporters, tasked with delivering products to customers abroad, are struggling to find available flights to meet their delivery commitments.

Industry officials have characterized the chaos in air transport as unprecedented, resulting in delays and disruptions in production and product deliveries. This turmoil is damaging manufacturers' reputations and competitiveness, leading to the loss of customers, new contracts, and revenue.

Israeli assassination policies put economy at risk 

The ongoing war on Gaza and subsequent confrontations on multiple other fronts have further compounded the challenges the Israeli aviation industry is facing. The crisis worsened in late July when numerous airlines still operating in the region announced the suspension of flights following the targeted assassination of Hezbollah commander martyr Fouad Shukr in Beirut and Hamas political bureau head martyr Ismail Haniyeh in Tehran.

Currently, the bulk of aviation activity relies on local airlines — such as El Al, Arkia, and Israir — which continue to operate but are overwhelmed by demand. Their limited fleets are struggling to meet the growing market needs for air cargo transport.

Senior officials in the industry have reported that the reduction in aviation activity over the past year has led to a significant increase in air transport costs, rising from around 3 euros ($3.26) per kilogram of goods to approximately 9 euros ($9.77). They warn that continued supply declines, coupled with rising demand, could further inflate prices.

Amid preparations for a potential attack on Iran following a barrage of missiles fired at Israel, the industry is concerned that any further deterioration in security could exacerbate the situation. One exporter expressed deep concern over the cyclical nature of war, highlighting the economy’s vulnerability in the face of worsening conditions and a lack of viable solutions.