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Economy05:38 · Sep 3

Israel's Ben Gurion Airport Faces Financial Strain Amid Staff Shortages

Channel 9
Translated & summarized from Channel 9 by baba
The story · English

Israel Airports Authority is grappling with escalating labor costs, which consumed 75% of its revenue in the first quarter of 2026, amounting to 477 million shekels against total revenues of 629 million shekels. The authority has incurred a deficit of nearly 2 billion shekels between October 7, 2023, and the end of June 2026, according to Globes. This financial pressure is exacerbated by significant staff shortages at Ben Gurion Airport, with the head of the workers' committee, Pinchas Idan, reporting a deficit of 400 to 500 employees across various critical roles, including security, baggage handling, and transportation. Over 100 employees are currently in reserve duty, and dozens are on extended sick leave. The workers' committee has also demanded a reduction in official shift lengths from 13 to 9 hours.

Despite the reported staff shortages, recent statistics present a complex picture. In August, Ben Gurion Airport is expected to handle approximately 2.6 million passengers, with 978 permanent and temporary staff employed in baggage sorting and processing. This is comparable to August 2019, when the airport served 2.8 million passengers with 976 such employees, and 2020, with 2.7 million passengers and 975 employees. The workers' committee contends that new equipment installed since then has increased staffing needs. Approximately 250 temporary employees were hired over the summer at a monthly cost of 15,000 to 20,000 shekels each, with ongoing debate about their potential permanent positions.

Financial figures reveal a worsening trend in labor costs. In 2025, salary and related expenses reached 1.9 billion shekels, a significant increase from 1.6 billion in 2024, while revenues grew from 2.8 billion to 3.7 billion shekels. This has led to labor costs rising from 39% to 51% of revenue over six years, compared to 1.6 billion shekels in 2019 when revenues were 4.1 billion shekels. The authority also issued 500 million shekels in bonds in 2025.

Discussions are underway regarding a major reform of the Israel Airports Authority, potentially transforming it from a state-run entity into a state-owned company. This could involve privatizing terminals and transferring operations to private companies, which might lead to many airport employees transitioning to private sector employment. In the interim, airport management is preparing for potential disruptions, bringing in additional staff and having managers temporarily fill in for frontline workers.

Read the original at Channel 9
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