Middle East tensions have once again interrupted a key service route for United Airlines. Analysts at Deutsche Bank noted in a recent research note that the carrier has cancelled all service between the United States and Tel Aviv, as conflict between Israel and Iran threatens to escalate to all-out war.
The company had recently been offering double daily service from Newark to Tel Aviv before it was suspended on rising tensions in the Middle East,” the Deutsche note reads. “That service was expected to resume by early September. However, United has now decided to cancel all Tel Aviv service for the remainder of its published schedule (through July 2025), including service to/from Chicago, San Francisco, and Washington-Dulles which were set to restart in November.”
United did not immediately respond to a request for comment. The airline suspended its Tel Aviv flights soon after the Oct. 7 Hamas attack on Israel, which killed 1,200 and sparked a war in the Gaza Strip that has killed at least 39,000 Palestinians.
United restarted service to Tel Aviv in March, but it had to cancel it again in April. Then United began flying to Israel again in June, but a further ramping-up in flights is off the table.
On United’s most recent earnings call, CEO Scott Kirby said service to Israel was not a small part of the company’s bottom line.
“Tel Aviv, when we pulled it out, was obviously about 2% of United Airlines,” he said. “I think that number surprised everybody. And obviously, it is lucrative flying for United, just to say the least, and so its loss was significant”.
The ongoing conflict between Israel and Iran has had a significant impact on international travel, especially for United Airlines, one of the major carriers operating routes between the United States and Tel Aviv. As tensions in the Middle East continue to rise, with fears of an escalation to all-out war, United Airlines has made the difficult decision to cancel all flights between the U.S. and Tel Aviv, not just for the immediate future but through July 2025.
This move comes as a major blow to the airline, which had previously offered double daily service between Newark and Tel Aviv. The airline had been planning to resume this service by early September, but the deteriorating security situation in the region has made it unsafe and impractical to continue operations. Additionally, United had scheduled the resumption of flights between Tel Aviv and other major U.S. cities, including Chicago, San Francisco, and Washington-Dulles, in November. However, those plans have now been shelved as the airline extends its suspension of all Tel Aviv services.
The decision to halt operations is directly tied to the escalation of violence in the region, particularly following the deadly Hamas attack on Israel on October 7, which resulted in the deaths of 1,200 people and sparked a broader conflict in the Gaza Strip. The ongoing violence, which has claimed tens of thousands of lives, including at least 39,000 Palestinians, has made it increasingly risky for airlines to operate in the region.
United Airlines had attempted to maintain service to Tel Aviv amidst the conflict, resuming flights in March after an earlier suspension. However, the airline was forced to cancel these flights again in April due to rising tensions. In June, United once again resumed flights to Israel, but with the situation continuing to worsen, the airline has now decided that further ramping-up of flights is not feasible. The suspension of service to Tel Aviv is not just a logistical challenge for United; it also represents a significant financial loss.
On a recent earnings call, United’s CEO, Scott Kirby, highlighted the importance of the Tel Aviv route to the airline’s overall business. He revealed that the Tel Aviv route accounted for about 2% of United’s total revenue, a figure that surprised many. The route was not only a key part of the airline’s network but also one of its more lucrative services. The loss of this revenue stream is a significant setback for the airline, which, like many others, has been grappling with the financial impact of the COVID-19 pandemic and the subsequent recovery.
The suspension of United’s Tel Aviv service also reflects broader challenges faced by airlines operating in conflict zones. The safety of passengers and crew is the top priority for any airline, and the volatile security situation in the Middle East makes it difficult to guarantee that safety. The decision to suspend flights is not taken lightly, as it involves significant financial implications and logistical challenges. However, in the face of ongoing conflict, the risk of continuing operations is simply too great.
The impact of the suspension will be felt not only by United Airlines but also by the many passengers who rely on the airline for travel between the U.S. and Israel. The cancellation of these flights means that travelers will need to find alternative routes, which may involve longer travel times and higher costs. Additionally, the suspension could have broader economic implications, as it affects tourism, business travel, and cargo shipments between the two countries.
In the context of the broader airline industry, United’s decision to suspend Tel Aviv flights is indicative of the challenges that airlines face in navigating geopolitical risks. The Middle East has long been a region of instability, and airlines operating in the region must constantly assess the security situation and adjust their operations accordingly. The suspension of Tel Aviv flights is just one example of how airlines must adapt to changing circumstances in order to protect their passengers, crew, and business interests.
Looking ahead, the resumption of United’s Tel Aviv service will likely depend on a stabilization of the security situation in the region. However, with tensions between Israel and Iran showing no signs of easing, it is unclear when or if United will be able to safely resume flights to Tel Aviv. For now, the airline is focused on managing the impact of the suspension and exploring alternative routes and strategies to mitigate the financial loss.
In conclusion, United Airlines’ decision to cancel all flights between the U.S. and Tel Aviv through July 2025 underscores the significant impact that geopolitical tensions can have on international travel. The suspension of service is a major financial blow to the airline and highlights the challenges of operating in conflict zones. As the situation in the Middle East continues to evolve, airlines like United will need to remain agile and responsive to the changing security landscape in order to protect their passengers, crew, and business interests.