Ben Gurion Airport to Increase Passenger Fees by 11% Starting 2027

Starting in 2027, Ben Gurion Airport will implement an approximate 11% increase in passenger departure fees, with airlines, not passengers, directly responsible for the payment. The fee for Terminal 3 will rise from $33.87 to $37.68 per person, and for Terminal 1, from $15.61 to $17.36. While these individual increases of $3.81 and $1.75 may seem small, they represent a significant cumulative cost for airlines operating hundreds of flights annually.

The Airport Authority adjusts these fees yearly based on established regulations, factoring in consumer price index changes and the dollar exchange rate. The current increase is primarily attributed to the currency exchange mechanism, which causes the dollar-denominated fee to rise more significantly than Israeli inflation, even without an additional tariff hike by the Authority. Finalized rates are expected before October 1st.

Although passengers do not pay the fee directly, it is considered a flight operating expense that airlines may pass on to consumers. If an airline fully transfers the cost, a ticket from Terminal 3 could increase by roughly $3.81, and from Terminal 1 by $1.75. For a family of four, this could mean an additional $15.24 per person for a one-way trip.

However, the final impact on ticket prices is uncertain. Airfare is influenced by numerous factors, including fuel costs, aircraft load, seasonality, competition, and airline pricing strategies. Studies suggest airlines typically pass on less than half of their own cost increases, though this varies by market and competition levels. Some research indicates a near-complete transfer of airport fees in certain markets, while others show less.

Ben Gurion Airport's fees have steadily increased. From 2023 to 2027, the Terminal 3 fee is projected to rise by about 27% in dollar terms, and Terminal 1 by approximately 27.2%. The substantial difference between Terminal 1 and Terminal 3 fees continues to make Terminal 1 attractive for budget airlines. The cumulative effect of these increases, especially with rising passenger traffic, could lead to a gradual overall increase in airfare rather than a single sharp jump.