After two years of dominating Israel’s skies during the Gaza war, El Al's market monopoly is coming to an end. The gradual return of foreign carriers to Ben Gurion Airport is reshaping the aviation sector — and El Al is already feeling the impact.
Etihad Airways will increase flights between Abu Dhabi and Tel Aviv to five per day © Mena Today
After two years of dominating Israel’s skies during the Gaza war, El Al's market monopoly is coming to an end. The gradual return of foreign carriers to Ben Gurion Airport is reshaping the aviation sector — and El Al is already feeling the impact.
According to the Israeli financial daily Globes, El Al’s share price has dropped 14% since early October, as investors anticipate renewed competition in the post-ceasefire environment.
During the war, Israeli airlines thrived amid security concerns that kept most foreign companies away. But with the conflict de-escalating and global carriers regaining confidence, the skies over Israel are opening up again.
United Airlines is leading the comeback. Just after the Gaza agreement was announced, it confirmed a significant boost in service on the Tel Aviv–New York route and plans to resume direct flights to Chicago and Washington, D.C., making it the only U.S. carrier serving three U.S. cities from Israel. Delta still flies only to New York, and American Airlines has yet to return.
In the Gulf, Etihad Airways will increase flights between Abu Dhabi and Tel Aviv to five per day by December. The airline, along with flyDubai, remained one of the few operating throughout the conflict, gaining loyalty among Israeli travelers.
Other major players — including Lufthansa Group, Swiss, KLM, Air Canada, and British Airways — are resuming operations. Low-cost carriers like Wizz Air and newcomers like Greece’s Sky Express, Romania’s Animawings, and Scandinavia’s SAS are also entering or re-entering the market.
The shift has already triggered price drops, with round trips to destinations like Las Vegas and Chicago now available under $720. If peace holds, the Israeli aviation market — known for high fares and strong outbound travel demand — may become even more attractive to global airlines.
While political tensions with countries like Turkey and Egypt may slow some returns, the monopoly El Al once held is fading. A more competitive, globalized air travel market is returning to Israel — and passengers are likely to benefit first.
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