Israel aviation growth resumes amid conflict risk and rising Wizz Air influence
Israel's airline capacity is back on a post-pandemic recovery path, after withstanding declines during the period of conflict following the Oct-2023 Hamas attacks. In mid Jan-2026, seat numbers are at 112% of the equivalent period of 2019.
El Al remains the biggest airline by seats in Israel, with a projected capacity share of 28% in the first six months of 2026. However, the return of international airlines means increased low cost competition.
Wizz Air Group is the largest non-local operator - and the largest low cost operator - in Israel, which is a profitable market for the ULCC. It is in talks with the Israeli government about establishing bases at Tel Aviv and Eilat. Subject to resolving regulatory and other issues, in particular safety and security requirements, Wizz Air hopes to implement these plans from Mar-2026.
Significant geopolitical risks continue to overhang Israel's aviation market and any return to conflict would likely interrupt its renewed growth path.