US Airlines Returning to Israel, But Days of $1,000 EY-NY Ticket Are Over

Delta Air Lines will resume flights to Israel on April 1, while United Airlines plans to return on March 15. Despite their return, airfare costs remain high.

According to a senior source in the aviation industry, “Today, a $1,500 ticket to the U.S. is considered reasonable. We no longer see many airlines offering $1,000 fares to the U.S.”

The source noted that the price of base tickets has risen, with foreign carriers entering the market offering fares that are only slightly higher or lower—about 10% more or less—than those of El Al. “Prices are much higher than in previous years,” the source explained. “The more international airlines return, the greater the competition, but it will be within a high price range. Airlines know they can charge more and still fill seats, so they are not rushing to lower prices.”

Arkia introduced a new route to New York on Saturday night, initially created in collaboration with TechAir, a project designed to address the severe lack of flight options between Israel and the U.S. Since then, the project has been fully managed by Arkia, with three flights per week on Sundays, Mondays, and Wednesdays. Arkia began offering introductory fares starting at $1,200 for March. However, ticket prices are expected to increase to around $1,700 in April.

El Al has set a price ceiling for all its destinations, including North America, starting in August. By April 2025, its highest economy-class fare to North America will be capped at $1,595. For the months of March and May, prices are expected to stay around $1,500. United Airlines is offering flights to New York in March for $1,400, with April fares ranging from $1,450 to $1,650.

Currently, competition on the New York route remains limited, as many international airlines have yet to fully restore their pre-war schedules to Israel. However, there is hope that the return of European carriers offering connecting flights to the U.S. could help drive prices down. Ryanair, a major low-cost carrier, is also set to resume flights to Israel in April, which should increase competition. However, experts in the industry caution that airfares are unlikely to decrease soon due to the slow return of flights, limited seat availability—particularly ahead of the Passover holiday—and the fact that Israeli travelers have shown a willingness to pay higher prices.

“Since the end of the COVID-19 pandemic, after two years of grounded planes, ticket prices have been on the rise, and we haven’t seen fares like those before the pandemic,” an aviation executive explained. “In Israel, the situation was further impacted by the war. Foreign airlines stopped flying here, El Al dominated the U.S. route, demand outstripped supply, and planes were packed. So when international airlines returned, they adjusted to Israel’s market prices.”

Ido Vog, CEO of Issta Sport, a travel company, said that, for the time being, there is little incentive for airlines to lower fares. “Demand is still strong, and it’s all about supply and demand,” he said. “We’re approaching the end of the war, and people are eager to travel after being grounded for so long. While supply is increasing, it will take time for Israeli consumers to regain trust in foreign airlines. They abandoned passengers when times got tough, so despite rising demand, many Israelis may be hesitant to rely on them again. They’re willing to pay a premium for Israeli carriers to ensure their trips.”

As long as Israeli airlines continue to benefit from strong demand and consumer trust, international carriers are sticking with their current prices, preventing fares from falling. “This will only change when we have sustained security stability, and major airlines like Lufthansa, Delta, or United operate flights consistently for several months,” Vog said. “But that could take time. Not all U.S. airlines have fully restored their routes to Israel, and that continues to affect ticket prices.”

{Matzav.com}