Ben Gurion Airport Passenger Fees to Rise 11% in 2027

The Israel Airports Authority (IAA) announced an upcoming increase in passenger fees at Ben Gurion Airport, set to take effect in 2027. The fee for departing passengers from Terminal 3 will rise to $37.68, up from $33.87 this year. For Terminal 1, the fee will increase to $17.36 from $15.61 in 2026. This represents an overall rise of approximately 11.2% in the dollar-denominated fee.

The fee is collected from airlines for each passenger departing Israel, and the airlines are responsible for remitting the payment to the IAA. While this fee is a component of flight operating costs, it may be passed on to passengers in the form of higher ticket prices. The extent to which this occurs depends on individual airline pricing strategies and market competition.

The IAA stated that the increase is not due to a decision to raise fees beyond the established mechanism. According to IAA regulations, fees are set in Israeli shekels and adjusted annually based on the consumer price index and the prevailing dollar exchange rate. The 2027 update reflects a 1.54% increase in the index. A significant factor contributing to the higher dollar amount is actually a decrease in the dollar's exchange rate; because the fee is based on a shekel amount, a weaker dollar results in a higher dollar equivalent.

In shekel terms, the IAA emphasizes, there is no change beyond the standard adjustment. For airlines, this means increased costs per departing passenger, with the cumulative impact depending on their operational volume. Airlines handling hundreds of thousands of passengers annually from Terminal 3 could face millions of dollars in additional annual passenger fees.

Passengers might feel the impact most acutely during periods when airlines struggle to absorb additional costs. However, in a competitive market, airlines may absorb part of the increased cost.