War, Cheaper Euro Push Cyprus to the Top of Israeli Travel Picks

About 590,000 Israelis flew to Cyprus in 2025, up 39% from 2024, helped by the short flight, a familiar atmosphere, and cheaper prices. The euro’s decline against the shekel made the island even more affordable than it already was. The article also notes that Israelis stranded in Cyprus during the war were among the first to return home, some on rescue flights and others by boat.

Cyprus Airways CEO Thanos Pascalis told Calcalist that Israel is a “strategic” market for the airline. He said demand from Israelis remained strong even in difficult periods, and that the company now sees a clear shift toward last-minute bookings, with travelers deciding very close to departure time. According to him, flexibility and reliability are now the key factors for Israeli customers, while the Tel Aviv-Larnaca route is boosted both by vacation travelers and business passengers, as well as by Israelis using Cyprus as a connection point to Europe and other international destinations.

Pascalis said Cyprus Airways has never considered reducing operations in Israel and was among the first foreign airlines to return to Tel Aviv. He added that the company temporarily suspended some services when security conditions required it, but always aimed to restore them quickly because maintaining the air bridge between Cyprus and Israel is a strategic interest. He also said the war in Israel increased demand on the airline as competitors pulled capacity from the market, leading to very high load factors.

On fares, Pascalis said rising prices are driven by higher operating costs, not by exploitation. He cited a doubling of fuel prices in recent months and sharp increases in insurance premiums tied to the security situation, while saying a full return to pre-2023 prices is unlikely as long as fuel and insurance remain expensive. Separately, the article says tourism in Cyprus was hit hard by the fighting with Iran, including attacks on British bases on the island, with airport traffic down as much as 17% in Larnaca and 10.7% in Paphos. That makes Israeli visitors especially important, as Britons are the top inbound market and Israelis are now second with 12% share. Cyprus’s tourism office in Israel said eight airlines now operate about 150 weekly flights between Israel and Larnaca and Paphos, and that the island is also attracting Israeli businesses because it is only about half an hour from home by air.