Airlines in Israel is seeing a significant reversal in 2026 after the prior year’s sharp rebound, underlining heightened volatility compared to the broader Middle East and Africa. Despite persistent disruption driven by ongoing conflict and economic uncertainty, Israeli carriers have demonstrated superior operational resilience relative to international rivals, maintaining connectivity and rapidly adapting networks. The landscape is characterised by a pronounced split in passenger demand between premium travellers prioritising flexibility and enhanced services, and value-focused customers seeking lower fares and promotions, prompting leading operators to expand fare segmentation and ancillary offerings. Growth prospects remain underpinned by robust fundamentals, including a rising population and increased consumer expenditure, while the outlook is shaped by continued investment in international network diversification and the emergence of new entrants driving competition. Success in airlines will require brands to respond swiftly to shifting demand, leverage digital and direct sales, and tailor offerings to the evolving needs of both premium and price-sensitive travellers, all while maintaining agility in the face of regional volatility.
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Overview:
Understand the latest market trends and future growth opportunities for the Airlines industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Airlines industry in Israel, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Airlines in Israel report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Airlines in Israel?
- Which are the leading companies in Airlines in Israel?
- How are companies responding to the travel restrictions?
- Which travel sectors are proving the most resilient?
- What are companies doing to innovate and future-proof?
Key Data Insights
Key Industry Trends
Israeli airlines face value decline as geopolitical uncertainty outweighs economic resilience
Airlines target new corridors to capture recovering demand
Israeli carriers sustain operations as foreign airlines hold back
Chart 1 Airlines Sales: Value 2021-2031
Israir and Arkia to diversify networks to strengthen resilience
El Al to leverage fare segmentation to boost profitability
TechAir and new entrants to drive competition and connectivity
Chart 1 Forecast Airlines Sales: Value 2021-2031
El Al consolidates leadership as local carriers absorb displaced demand
Withdrawal of international carriers reshapes the competitive balance
Smaller carriers carve out defensible niches amid market concentration
Chart 1 Airlines GBO Company Shares: % Value 2021-2026
Cabin design and seat innovation reflect shifting passenger priorities
Digital platforms and in-flight technology elevate the passenger experience
Ancillary products and loyalty innovation unlock new revenue streams
Chart 1 Real GDP Growth 2021-2031
Chart 2 Inflation 2021-2031
Chart 1 Population 2021-2031
Chart 2 Population by Generation 2026
Chart 3 Consumer Expenditure 2021-2031
Country Reports Disclaimer
The following categories and subcategories are included:
Airlines
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- Low Cost Carriers
- Full Service Carriers
- Non-Scheduled Carriers
- Passenger Revenue
- Ancillary Revenue
- Domestic Airlines
- International Airlines
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- Airlines Online via Direct
- Airlines Online via Intermediaries
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- Airlines Offline via Direct
- Airlines Offline via Intermediaries
Airlines
Airlines covers sales made to country residents (outbound and domestic tourists) and excludes sales to incoming tourists. Please note that airlines sales made to country residents when they are travelling abroad or through foreign websites or apps are also included and will be considered under the country of residence. The total amount paid for a flight after taxes and other charges is included. The return flight leg is included as well as the total amount paid for a flight ticket. Value sales exclude all forms of transit. Euromonitor International considers airline capacity and passengers carried in terms of enplanement based on scheduled flights. A passenger whose flight stops mid-route to pick up more passengers but continues with the same aircraft/flight number would be counted as one enplanement. A passenger who switches flights to another airline or aircraft with a new flight number mid-journey would be considered as two enplanements. Enplanements are not the same as number of seats sold or seat bookings, as the latter both include all bookings and do not exclude no-shows and cancellations. Direct transit passengers are excluded, eg those who continue on the same flight. Other transit passengers are included where passengers change plane with a new flight number. Air passengers carried relate directly to air value sales, where domestic and outbound travellers are only included. As such value and volume data in both sizes and shares is aligned and exclude the inbound component.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Airlines research and analysis database.
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