Airlines worldwide have suspended or scaled back flights to and from Tel Aviv after a surprise attack by Hamas militants on Israel over the weekend. The carriers have cited safety concerns and stated that they will resume operations once the conditions improve.
On Sunday, approximately 50% of the scheduled Tel Aviv flights did not operate, and one-third were cancelled on Monday, according to Flightradar24. Major US carriers United Airlines, Delta Air Lines, and American Airlines suspended their direct flights to Israel after the Federal Aviation Administration advised caution.
European airlines have also taken action, with Ryanair canceling flights until Wednesday and Norwegian Air canceling its Copenhagen and Stockholm to Tel Aviv flights for the entire week. However, Israel's national carrier El Al added more flights to bring reservists back to assist with the country's mobilization efforts.
The attack by Hamas militants resulted in the deaths of 700 Israelis and the abduction of several individuals. Israel retaliated by launching airstrikes on the Gaza Strip. Israel's Kan TV reported on Monday that the death toll had reached 800.
The tourism sector in Israel is expected to suffer a significant blow due to the flight cancellations. Tourism accounts for 3.6% of total employment in the country. Bookings were already 18% below pre-pandemic levels, and the recent political turmoil, coupled with safety concerns, will likely further impact tourism.
US cruise operators Royal Caribbean and Carnival have also adjusted their itineraries in the Israel area. As a result, their stocks have seen declines of 3% and 5%, respectively.
Despite the cancellations, travel companies have reported that clients have not been canceling their trips outright, but are expressing more caution and inquiring about safety measures. Regulators, including the FAA, the European Union Aviation Safety Agency, and Israel's aviation authority, have urged airlines to exercise caution in the region's airspace.
Major US carriers such as United Airlines, American Airlines, and Delta have suspended flights until further notice. Of the three, United Airlines has the largest exposure to Israel, comprising 1.9% of its planned global capacity in the last quarter of 2021. American Airlines has the lowest exposure, with Israel accounting for 0.4% of its global capacity during the same period.
Air France and Finnair have suspended direct flights, while easyJet has halted flights to Tel Aviv on Sunday and Monday, with plans to adjust flight timings in the coming days. Wizz Air, one of the most affected airlines, has canceled flights until further notice due to its significant operations in Israel.
Lufthansa Group and Portugal's TAP have also canceled flights, with TAP offering refunds or rescheduling at no additional cost. Virgin Atlantic will continue to operate some flights but allows customers to rebook or request refunds until October 15.
As a result of the conflict in the Middle East, shares in British airlines, such as IAG, Wizz Air, and easyJet, fell on Monday, while oil prices rose. Ben Gurion airport in Tel Aviv experienced a significant decline in scheduled flights, with only 197 tracked flights out of the 350 scheduled on Sunday, according to FlightRadar data.
While Ben Gurion continues to handle arrivals and departures, Hainan Airlines, the only Chinese airline flying between China and Israel, and other airlines from Hong Kong and South Korea, have canceled flights between Tel Aviv and Shanghai. Hainan Airlines will continue its Beijing and Shenzhen to Tel Aviv flights, waiving cancellation fees until October 20. EgyptAir has indefinitely suspended flights between Cairo and Tel Aviv.