Israel Faces Commercial Isolation Amid Global Flight Suspensions
Israel is currently experiencing significant commercial isolation as numerous global airlines have suspended flights to and from the country. Major cities such as Washington, San Francisco, Toronto, Hong Kong, and New Delhi have seen direct flights to Tel Aviv halted for months, severely limiting business travel and impacting air freight operations. According to Bloomberg, this situation has resulted in a drastic reduction in the number of airlines operating in Israel, with only a few Israeli companies, including El Al, maintaining services at the largely deserted Ben Gurion Airport.
Impact on Air Travel and Costs
The ongoing flight suspensions have led to a staggering 40% drop in aircraft and passenger numbers at Ben Gurion Airport during the first nine months of 2024 compared to the previous year. Additionally, air ticket prices have surged by 50% to 400%, while air freight costs have skyrocketed by over 250%. This dramatic increase in costs has contributed to rising inflation in Israel, placing additional financial strain on consumers and businesses alike.
El Al's Dominance in the Aviation Market
In contrast to the overall decline in air travel, El Al Israel Airlines has emerged as the primary beneficiary of the current aviation landscape, capturing 46% of total flights in the country. The airline reported a remarkable net profit of $228 million in the first half of 2024, marking an eightfold increase from the same period last year. However, this profitability comes at a high cost to consumers, who face limited travel options and inflated prices. The suspension of flights by major international airlines, including Turkish Airlines, KLM, British Airways, and American Airlines, has further entrenched El Al's dominance in the market, leaving travelers with few alternatives.
