Israeli Airline Stocks Soar Following Dubai Flight Incident

Israeli airline stocks, El Al and Israir, experienced significant gains on Wednesday, rising 7% and 5.4% respectively on the stock exchange. These sharp increases are attributed to an incident aboard a Flydubai flight originating from the UAE, which was en route to Ben Gurion Airport. Security officials are investigating the possibility that a co-pilot from Oman attempted to crash the aircraft, which carried 174 passengers, including 27 children.

This developing assessment that the incident may have been an act of terrorism could influence Israelis' future travel choices. There is an expectation that travelers might opt for Israeli airlines, which employ pilots with military aviation backgrounds and operate under state-funded, stringent security protocols.

Although Israeli airlines do not currently fly to Dubai due to security concerns and will not carry direct passengers on that route, they are anticipated to benefit from a potential decrease in demand for connecting flights through the Emirates. This shift could lead to a greater preference for direct flights, according to Ynet.

Flydubai, which holds a 3.5% share of all passengers at Ben Gurion Airport and maintained operations in Israel during the recent conflict, has been a popular transit hub for Israelis, especially after Istanbul ceased to be a viable connection point. The incident is expected to significantly impact Flydubai's performance in Israel.

In contrast, El Al commands a 44% market share of passengers at Ben Gurion, with Israir holding 13.5%. Wednesday's stock surge continues El Al's positive trend, with a 15.8% increase year-to-date and a substantial 422% rise over the past three years. Israir, however, saw a 13% decrease year-to-date and a 10% drop over the last three years prior to these recent gains.