Lufthansa exits, El Al dominates

European aviation giant Lufthansa announced Monday it is extending the suspension of its flights to Tel Aviv until June 15, citing ongoing security concerns due to frequent missile attacks launched from Yemen toward Israel.

The decision affects not only Lufthansa but also its affiliated carriers, including Swiss, Austrian Airlines, Brussels Airlines, and ITA Airways. The group has repeatedly adjusted its flight operations since the onset of the Gaza war in October 2023, in line with other major international airlines.

The continued flight disruptions come amid heightened regional volatility, particularly as Iranian-backed Houthi militants in Yemen have increased missile and drone attacks in solidarity with Hamas. 

While Israel’s air defense systems have intercepted most threats, the risk to civilian aviation remains a top concern.

The suspension is expected to have a significant impact on Israel’s tourism sector, which relies heavily on European visitors, especially during the spring and summer travel season. 

Analysts warn that this could translate to a sharp decline in tourism revenue and reduce access to key markets.

However, the situation also creates unexpected opportunities for Israel's national carrier El Al and a handful of smaller regional airlines, which are now operating with reduced competition and effectively monopolizing the route. 

With international carriers grounded, El Al has increased its market share, benefiting from higher ticket prices and full flights.

While Lufthansa has stated it is "monitoring the situation closely," there is no guarantee that the suspension won't be extended further if tensions persist. In the meantime, travelers and businesses alike must navigate a disrupted and unpredictable air travel landscape across the Middle East.