Israel’s flag carrier El Al faces significant financial strain from flight suspensions triggered by the 2026 Iran conflict, which erupted on February 28 with U.S.-Israeli airstrikes on Iranian targets. The conflict prompted immediate airspace closures across the Middle East, including Israeli skies, Dubai, Abu Dhabi, and Doha hubs operated by Emirates, Etihad, and Qatar Airways.
El Al’s Operations Control Center Director Alon Lavi acknowledged operational failures in a video statement, citing canceled flights, website overloads, and communication breakdowns under emergency conditions coordinated with Israeli aviation authorities. “Flights were canceled, our website struggled under the load, some of you could not reach us when you needed us most,” Lavi stated.
Israeli airspace remains closed as of early March, stranding thousands of Israelis abroad. El Al is preparing a recovery effort to repatriate passengers once skies reopen. Rerouting flights south over Saudi Arabia adds hours and fuel costs, pressuring air traffic control and potentially raising fares if disruptions persist.
Prior conflicts, including the 12-day Iran war in June 2025 and missile barrages in 2024, repeatedly grounded flights into Israel. Despite wartime profits of $403.3 million in the prior year—26% higher than 2024—El Al has drawn criticism for inadequate crisis preparedness. Separately, the airline faces a potential $39 million fine for price-gouging during the Israel-Hamas war, though unrelated to current events.
Broader impacts include halted Gulf energy exports under force majeure, with oil prices potentially reaching $150 per barrel. Aviation analysts predict ongoing delays as military operations define safe corridors.