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Israel-US fares stay high despite more seat supply

by theadvisertimes.com
3 weeks ago
in Business
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Israel-US fares stay high despite more seat supply
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American Airlines was scheduled to resume Israel flights in January 2027, but earlier this week announced a postponement until March 2027. The airline’s Tel Aviv-New York service has not resumed regular operations since October 7, 2023.

However, rival US carriers Delta (September 5) and United (September 7) are due to return to Israel next month, after halting service to Tel Aviv in March at the start of the war with Iran.

In addition Israeli carrier Israir awaits final approvals to launch its Tel Aviv – New York route using the Airbus A330 aircraft it purchased for $85 million.

This should create a more competitive market on the Tel Aviv – New York route the likes of which has not been seen for a long time. Indeed, the fares index of the travel-tech company lastminute.co.il, which analyzes fares on direct flights from Tel Aviv to New York, indicates a significant improvement in the ability to obtain tickets at the relatively last minute. In the summer and holidays and summer last year, economy class tickets were sold out months in advance, but this year seats are available throughout the September holidays.

Differences of hundreds of dollars between airlines

Contrary to expectations, the improvement in seat availability still does not make fares cheaper. Pricing also remains very volatile, and fare differences between the various airlines even on the same dates reaches hundreds or even thousands of dollars. A check on lastminute.co.il shows that the price of a single tourist ticket on the route ranges from $1,460 to $3,046, with the cheapest airline changing depending on the departure date.

For example, according to a check conducted for economy class (excluding United, due to availability problems), in early September you can find a ticket on Arkia for $1,722, on Delta for $2,176 and on El Al for $2,186. On Rosh Hashanah, prices drop slightly with the Israeli airlines. On Arkia you will pay $1,460 and on El Al $1,722. On Delta, also on Rosh Hashanah, the price is $2,134. The only date when Delta is cheaper is Yom Kippur, when the Israeli companies offer a price that ranges around $3,000, while on Delta there are tickets for about $2,500.

While there is greater seat availability in economy class, then in business, seat availability remains limited and extremely low. This shortage of premium seats produces sharp fare jumps and wide differences between airlines. In early September, the cheapest fare belongs to Arkia at $5,741,while the most expensive fare belongs to El Al at $7,365. Peak fares are around Yom Kippur: as a result of the shortage, prices in the business class range between $6,122 on Arkia and a peak price of $9,994 on United.

Reluctant to fly to New York

Along with the increase in seat supply, demand for New York during the holiday season is declining. The share of demand for New York in this period out of total demand for holiday flights has fallen from 2.4% in 2025 to 2% this year, along with a general fall in demand for this period from last year. However, when examining bookings already made for September, the number of passengers flying from Tel Aviv to New York is 29% higher than in August.

lastminute.co.il VP marketing Assaf Greenberg says, “After a long period of limited availability on the route to New York, this year we can see an improvement in the economy class, but the market is still far from returning to full normality. The differences between airlines and between travel dates reach hundreds of dollars in economy class and thousands of dollars in business class, so the flexibility of a day or two and real-time comparison are of particular importance. The test shows that the price is not only affected by demand, but also by availability on each flight and in each class. During the holiday season, a small change in the departure date or airline can dramatically change the total cost of the trip.

In August, some 2.6 million passengers are expected to pass through Ben Gurion Airport. During the month, 47 airlines will operate at the airport, with the most popular destination countries, according to the Israel Airports Authority, being Greece, Cyprus, Italy, the UAE, the US and Germany.

During the weekdays of August, between 90,000 and 95,000 passengers are expected to pass through Ben Gurion Airport every day on incoming and outgoing flights, and on several days the total number of passengers will even exceed 100,000.

Published by Globes, Israel business news – en.globes.co.il – on August 4, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.




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