Israeli Airlines to Receive Up to 55 Million Shekels Compensation for Empty Flights During 'Operation Roaring Lion'

The Israeli government has approved a compensation mechanism for Israeli airlines to cover losses from empty flights conducted during Operation 'Roaring Lion.' The decision, announced on Thursday, follows a joint proposal by Transportation Minister Miri Regev and Finance Minister Bezalel Smotrich. The compensation fund will provide up to 55 million shekels in 2026 to offset costs incurred due to severe operational and security restrictions at Israeli airports during the operation.

During the operation, airlines faced unexpected constraints including passenger limits, limited aircraft ground time, and a shortage of parking spaces caused partly by American military aircraft occupying slots. These conditions forced airlines to operate empty flights to relocate planes abroad, ensuring continued air service and maintaining Israel's air connectivity.

The compensation mechanism, to be finalized by the Ministry of Transportation and the Civil Aviation Authority with the Finance Ministry's consent, offers two tiers. In the first, airlines can receive reimbursement of 33.5% of recognized expenses if they commit to not distributing profits to shareholders for one year. The second tier allows an additional 33.5% reimbursement if shareholders inject equity matching the state's contribution, potentially covering up to two-thirds of eligible costs.

Minister Regev emphasized the strategic importance of Israeli airlines, calling them a "strategic asset" vital for national continuity during emergencies. She highlighted the government's commitment to supporting airlines bearing the national burden under complex security conditions while balancing fiscal responsibility. Finance Minister Smotrich described the plan as a balanced and responsible approach combining necessary government support with shareholder accountability, underscoring the importance of fiscal discipline and national resilience.

The empty flights generated significant unrecoverable expenses for airlines, including fuel, crew, and operational costs, without ticket revenue. The approved compensation aims to help airlines maintain operational readiness for future challenges while ensuring prudent public fund management.