Flydubai Suspension Drives Up Flight Prices and Boosts Israeli Airlines
The suspension of Flydubai flights to Israel has spiked demand for local airlines and driven up ticket prices. Gulliver data shows a major surge in bookings with Israeli carriers for destinations like Thailand, Japan, and Rome.
The recent security developments regarding Flydubai flights and their suspension to and from Israel have triggered significant shifts in the local aviation market, leading to rising ticket prices and a growing preference for Israeli airlines among travelers.
According to Prof. Asher Blass, an economics lecturer at Ashkelon Academic College and former Chief Economist at the Bank of Israel, reduced market supply naturally drives up airfares. He notes that Israeli carriers now hold a distinct advantage, not only on potential routes to Dubai but also on flights to the Far East and Europe, as passengers seek heightened security measures.
Shifts in Passenger Preferences
Data from the Gulliver travel platform illustrates a sharp increase in the preference for Israeli airlines following the incident. In the week prior to the event, 48% of travelers booking flights to Thailand chose Israeli carriers, a figure that jumped to 66% the following week. Similarly, preferences for flights to Japan rose from 41% to 53%, while Rome saw an increase from 55% to 77%.
This shift in consumer behavior coincided with modest price increases on popular long-haul routes. The average round-trip fare to Tokyo climbed from $1,011 to $1,127, while flights to Bangkok increased from $846 to $889, though industry experts note that short-term weekly comparisons require cautious interpretation.
Alternative Connections and Market Outlook
Tamar Garzon, CEO of Gulliver, offers alternative options for travelers despite the reduction in convenient layover hubs.
"The suspension of Flydubai flights reduces connecting options to the Far East but certainly does not leave passengers without alternatives. Travelers can find connection flights via Tashkent with Uzbekistan Airways, Baku with Azerbaijan Airlines, and Addis Ababa with Ethiopian Airlines, often with convenient layover times."
Looking ahead, aviation analysts suggest that while Israeli airlines like El Al will attempt to expand capacity to meet surging demand, fleet limitations and regulatory approvals in foreign destinations could constrain significant expansion, keeping overall ticket prices elevated.
