Foreign Airlines Return to Israel, Sparking Hopes for Cheaper Flights

International airlines are gradually resuming flights to Israel's Ben Gurion Airport, increasing competition and potentially leading to lower airfares for passengers. Delta and United have already restarted direct routes from New York and Newark, respectively. Wizz Air is expanding its presence, Transavia is resuming flights to France, and SAS is set to reintroduce its Copenhagen route.

The return of these carriers, particularly on the popular US route, offers Israelis more choices and puts pressure on airlines to lower prices. Israir is also launching a new direct route to New York, with initial one-way tickets priced at $800.

Studies suggest that the presence of even one low-cost carrier can reduce fares by around 11%. Traditional airlines tend to lower prices significantly when low-cost carriers gain a substantial market share. Wizz Air's expansion is seen as particularly impactful, as it can drive down prices across the board and force competitors to adjust their fares.

However, a full price war is not guaranteed. If demand remains high, airlines may not feel compelled to drastically cut prices. The absence of major budget carriers like Ryanair and easyJet, which have cited issues with airport slots and Terminal 1 access, means competition is not yet at pre-crisis levels.

Despite the ongoing recovery, Israeli airlines like El Al, Israir, and Arkia still hold a significant market share. The increased competition from foreign carriers is expected to gradually shift this balance, offering passengers more options and potentially leading to more competitive pricing in the coming months.