Bluebird Airways to Compensate Passengers for Canceled Flights

Airlines will provide compensation to passengers whose flights to Israel were canceled due to airspace closures during military operations. Bluebird Airways has reached a settlement in a class-action lawsuit, agreeing to pay 800,000 shekels to affected citizens. The lawsuit stemmed from canceled flights in June 2025 during the "People Like a Lion" military operation, when the airline allegedly failed to provide assistance such as accommodation, food, and transfers to passengers stranded abroad. The airline had argued that these cancellations were due to force majeure and that it was not obligated to support passengers during extended airspace closures for security reasons, as arranging alternative flights was impossible. The Tel Aviv District Court mediated a compromise, allowing Israelis who purchased tickets for canceled flights between February 18, 2022, and the settlement's final approval, and who did not receive support, to claim compensation. Each eligible passenger will receive a discount of up to 400 shekels on a round-trip ticket purchased through the airline's website. Passengers will have two years from the legal approval of the agreement to use this voucher. Details on how to apply will be published on Bluebird Airways' digital platform and in official print media. The settlement is awaiting approval from the Tel Aviv District Court. Separately, the broader issue of airline responsibility during major conflicts is under review by the Supreme Court of Justice (BAGATS). Bluebird Airways opted to settle its customer claims early, despite the ongoing BAGATS proceedings, to resolve the dispute and mitigate legal risks.