Israel Airport Passenger Fees to Rise in 2027, Impacting Ticket Prices

Israel's Airports Authority has updated passenger fees for 2027, with increases set for both Terminal 3 and Terminal 1 at Ben Gurion Airport. Starting in 2027, the passenger fee at Terminal 3 will rise to $37.68 from $33.87 in 2026, while the fee for Terminal 1 will increase from $15.61 to $17.36. This represents an approximate 11.2% increase in dollar terms. Airlines pay this fee to the Airports Authority for each passenger departing from Israel, and it is considered part of flight operational costs, meaning a portion of the increase could be passed on to passengers in ticket prices. The exact impact on ticket costs will depend on individual airline pricing strategies and market competition on specific routes.

The Airports Authority stated that the fees are set in shekels and are adjusted annually based on the consumer price index and the dollar exchange rate. For the 2027 update, a 1.54% increase in the consumer price index was factored in. According to the authority, the shekel-denominated fee is not increasing beyond the legally mandated indexation. The authority also noted that a previous increase in October 2025 was 14%. A significant factor contributing to the higher dollar amount for the 2027 fee is the depreciation of the dollar, which results in a larger dollar sum when the shekel-based fee is recalculated at a lower exchange rate.

For airlines, even minor fee adjustments per passenger can lead to substantial expenses given the high volume of flights. Carriers handling hundreds of thousands of passengers annually through Terminal 3 incur millions of dollars in fees solely for this charge. The authority acknowledges that during periods when airlines face financial difficulties, such fee increases might more significantly affect passenger ticket prices. However, in highly competitive markets, airlines may absorb some of these additional costs.