Israir’s U.S. ambitions: Challenging El Al and Arkia in the transatlantic skies

On August 25, 2024, an Israir jet thundered into the skies above Ben Gurion International Airport near Tel Aviv, a vivid symbol of the airline’s burgeoning ambitions.

Now, Israir Airlines Ltd. is poised to soar to new heights, having secured a pivotal approval from the U.S. Department of Transportation (DOT) on April 21, 2025, to launch flights to the United States.

This milestone, announced with understated confidence, marks a bold leap toward challenging El Al’s long-standing dominance in Israel’s transatlantic market while navigating rising competition from another local carrier, Arkia Israeli Airlines.

The DOT’s temporary approval is a critical gateway to a permanent foreign air carrier permit, contingent on Israir meeting the rigorous safety and operational standards of the Federal Aviation Administration (FAA) and Transportation Security Administration (TSA).

Israir’s leadership is already mobilizing, with plans to secure final clearance by June 2025, as outlined in a recent board meeting.

The airline intends to operate six weekly nonstop flights between Tel Aviv’s Ben Gurion International Airport and New York, using leased Airbus A330 aircraft piloted and maintained by its own crews.

This move signals not only an expansion but a direct challenge to El Al, Israel’s national carrier, which has maintained near-exclusive control over transatlantic routes, particularly since the Israel-Hamas conflict began on October 7, 2023, prompting many foreign airlines to suspend operations.

El Al has capitalized on its identity as the embodiment of Israel’s spirit, fostering customer loyalty despite high fares and limited seat availability.

Israir, however, is betting on its operational agility and competitive pricing to capture a share of the lucrative U.S. market.

Israir’s ambitions face an additional hurdle: competition from Arkia Israeli Airlines, Israel’s third major carrier.

In early February 2025, Arkia launched its own direct flights from Tel Aviv to New York’s John F. Kennedy International Airport, breaking El Al’s monopoly and marking its first foray into the U.S. market.

Operating three weekly flights with leased Airbus A330-900neo aircraft from Iberojet, Arkia has extended its New York service until at least October 2025, citing strong demand.

With roundtrip tickets starting at $1,200, Arkia offers a more affordable alternative to El Al’s fares, which begin around $1,626.

Arkia’s entry has already begun to reshape the competitive landscape, with industry experts noting potential fare reductions of $400 to $600 per person compared to El Al, especially during high-demand periods like Passover.

Israir, planning to launch its New York flights by Passover 2026, must now contend with both El Al’s entrenched market presence and Arkia’s head start in offering budget-friendly transatlantic options.

Israir Airlines Ltd., headquartered in Tel Aviv, is Israel’s second-largest airline, employing approximately 350 staff and operating a fleet of eight aircraft, primarily Airbus A320s and ATR 72s. Known for its low-cost model, Israir serves domestic routes like Tel Aviv to Eilat and international destinations including Larnaca, Dubai, and Berlin.

Unlike El Al, Israir operates flights on Saturdays, catering to travelers seeking flexibility.