Ben Gurion Airport Faces Operational Strain as Wage Costs Exceed Half of Revenues

Ben Gurion Airport has recently experienced operational disruptions due to alleged staff shortages, strike threats, and canceled meetings. Behind these issues lies a deeper structural problem within the Israel Airports Authority (IAA), where wage expenses have increasingly consumed a growing share of revenues, reaching an unprecedented 75% in the first quarter of 2026.

During a visit last Wednesday by Prime Minister Benjamin Netanyahu, Transportation Minister Merav Regag, and Transportation Ministry Director-General Moshe Ben Zaken, the operational challenges were highlighted. Workers’ union chairman Pinchas Idan raised concerns about a shortage of 400 to 500 employees across various divisions, including security, baggage handling, and fire safety. Despite calls for shorter shifts and additional staffing, the union denies any planned strikes.

Data reveals that passenger volumes in August 2026 are expected to be similar to pre-pandemic levels, with roughly 2.6 million travelers and nearly 1,000 baggage and screening staff, comparable to 2019 figures. However, the IAA’s financial reports show a negative cash flow of nearly 2 billion shekels since October 2025. Wage costs rose to 1.9 billion shekels in 2025, accounting for 51.3% of revenues, up from 39% in 2019. The first quarter of 2026 saw wages consume 75% of revenues due to a 20% drop in income caused by the recent "Roaring Lion" military operation.

In response to the crisis, the IAA has temporarily assigned administrative staff to frontline duties and continues recruiting new workers ahead of the holiday season. Discussions are underway about a significant reform that could transform the IAA from a statutory corporation into a government company with greater transparency and potential privatization of terminal operations, similar to Israel Ports Company. This would likely shift many existing employees to private operators.

With the peak travel day approaching on August 31, when around 100,000 passengers are expected, the airport is preparing for possible further disruptions. The IAA emphasizes ongoing efforts to improve staffing and operations, while the union has not commented on the latest developments. The situation raises concerns about the airport’s ability to maintain service continuity and retain foreign airlines returning after recent military conflicts.