Ben Airport Nears Pre-War Passenger Levels Amidst Market Consolidation

However, the aviation market structure has significantly changed, showing increased dominance by Israeli carriers.

Data from the Israel Civil Aviation Authority reveals a substantial 74% surge in passengers flying with El Al, Israir, and Arkia between September 2023 and September 2026. This indicates a larger share of traffic has shifted to these three local companies, while some foreign airlines remain absent from the market. The growth of Israeli airlines is attributed to fleet expansion, increased use of wet-lease arrangements, and flexible aviation agreements.

Wet-leasing, where an Israeli company sells tickets while a foreign firm provides the aircraft and crew, has become a crucial tool. This allows for rapid capacity increases and entry into new routes without lengthy waits for aircraft and crew. Arkia and Israir are leveraging this to expand operations on long-haul routes, filling the void left by departing foreign carriers.

In contrast, 31 airlines that operated scheduled flights in September 2023 were absent in September 2026. While some, including major American and European carriers, have returned, the overall number of operators remains significantly lower than pre-war levels. This reduction in competition has led to a more concentrated market, with El Al, along with its subsidiary Sun D'Or, capturing approximately 50% of the market share, up from a lower proportion when more foreign companies were active.

The decline in competition is measured by two standard concentration indices, both showing a significant decrease in market competitiveness. This consolidation impacts consumers by potentially increasing pricing power for major carriers and reducing the variety of flight times, destinations, and connection options. The cargo sector also reflects this trend, with a 5.3% drop in cargo volume in September 2026 compared to September 2023, and a 4.5% decrease year-to-date, alongside reduced competition.