El Al, Israir Stocks Surge Following Flydubai Flight Incident

Shares of Israeli airlines El Al and Israir saw significant gains on the stock exchange following an incident involving a Flydubai flight arriving in Israel on Wednesday. El Al's stock rose by 7%, while Israir's increased by 5.4%, according to bourse data released after morning trading.

Market analysts suggest the incident may prompt Israeli passengers to favor domestic carriers, which employ exclusively Israeli pilots and utilize a state-supported security system. Flydubai, a Dubai-based airline, is a popular choice for Israeli tourists traveling to the UAE and serves as a transit route via Emirates, especially after Istanbul became less accessible for Israelis.

Flydubai operates numerous weekly flights between Tel Aviv and Dubai, holding a 3.5% share of passenger traffic at Ben Gurion Airport. The airline maintained its presence in Israel even during periods of conflict. In contrast, El Al holds a 44% market share at Ben Gurion, and Israir holds 13.5%.

Experts anticipate the incident will impact Flydubai's standing in Israel. However, Israeli airlines do not fly to Dubai themselves due to security concerns. Their potential gains may stem from a general reduction in connecting flights and an increased demand for other direct routes offered by local carriers.

Year-to-date, El Al's stock has climbed 15.8%, with a 422% increase over the past three years. Israir's stock has declined 13% year-to-date and lost 10% over the last three years.