Israel's Airports Authority Faces 308 Million Shekel Loss in 2024

The Israel Airports Authority (IAA) has released its financial reports for 2024, reflecting one of the toughest years for Israeli aviation since the country's establishment. The year was marked by significant reductions in activity, revenue, and profitability, following the 'Iron Swords' war and its consequences.

The IAA stated that 'the war that began on October 7, 2023, dramatically dried up activity at Ben Gurion Airport and border crossings. A full quarter without regular activity led to a sharp decline in aviation volumes: during 2024, about 13.8 million passengers passed through Ben Gurion Airport on international flights - a decrease of about 34% compared to 2023, and more than 40% less than the forecasts that were before the outbreak of the war. Terminal 1 ceased to operate during this period, which further affected the volume of activity and revenues from rental and low-cost companies.'

The fourth quarter saw a loss of 123 million shekels.

A certain improvement is noticeable in the fourth quarter of 2024, compared to the corresponding quarter in 2023, the quarter in which the murderous terrorist attack occurred on October 7 and the war broke out as a result. The operational loss in the fourth quarter of 2024 is about 25% smaller than the 270 million shekel loss in the fourth quarter of 2023, to an operational loss of about 203 million shekels in the fourth quarter of 2024. The bottom line is that the loss narrowed by about 34% from a loss of 186 million shekels in the fourth quarter of 2023, to a loss of about 123 million shekels in the past quarter. These data highlight, alongside the depth of the war's impact on the authority's activity, the beginning of recovery.

Despite the difficulties, the IAA maintained functional continuity: Ben Gurion Airport did not close for a moment, humanitarian flights, cargo flights, and evacuation flights continued to operate - as did the land crossings to Egypt and Jordan. The management made extensive budget adjustments, across-the-board cuts, stopped regular payments to commercial tenants, and worked with suppliers in a flexible and reduced format.

The first quarter of 2025 shows a trend of change. Airlines such as the Lufthansa Group, United, ITA, Air France, Wizz, and others have already renewed their activity in Israel. Some have even increased flight frequencies and started operating to new destinations. Accordingly, Terminal 1 has returned to operate international flights of low-cost companies - mainly to Europe. The estimate is that by the summer season, we will see a broader and more significant recovery.

Despite the difficult year, the authority does not stop - but accelerates. The development plan for 2025-2027 and beyond, approved by the government, includes investments of about 8 billion shekels for the development of the authority's facilities, of which about 3.5 billion shekels are already budgeted for execution, including: Terminal 3: expansion of the northern and eastern arm - to handle future congestion, Terminal 1: environmental development, expansion of commercial areas and waiting halls, Ramon: adapting infrastructure for logistics transition and incoming tourism, additional budget for border terminals: planning the establishment of new terminals at the Allenby and Begin border crossings, adding lanes and digital accessibility. This is a strategic move designed to ensure a response to future demands, maintain Ben Gurion Airport's status as a regional aviation center, and provide solutions for the next decade.

'I entered my role as CEO of the Airports Authority in November 2024, in a particularly complex period,' says CEO Sharon Kedmi. 'Despite this, I look forward with faith and confidence. Our employees, management, and the entire aviation system - are strong and determined. This is not a cliché - it is a daily reality of professional, stable, and responsible work. 2025 already brings recovery, and we are taking determined steps to improve activity, upgrade service to passengers, and lead Israeli aviation forward,' Kedmi concludes.