Air Haifa Launches New Route to Paphos as Israeli Airlines Thrive

Air Haifa, the new Israeli airline, is set to introduce a fresh route between Haifa and Paphos, Cyprus, on April 3, 2025, with six weekly flights. The airline, which has been a game-changer for Haifa Airport, aims to offer competitive fares starting at $198 for a round trip, including hand luggage. Additional baggage can be added for an extra cost.

This new connection marks Air Haifa's third overseas route, following successful flights to Larnaca, Cyprus, and Athens, Greece. The airline, which began operations last September, was initially forced to operate from Ben Gurion Airport due to flight restrictions in northern Israel. However, with the region stabilizing, Air Haifa is expanding its fleet and will add more Mediterranean destinations in the summer, further solidifying its presence in the Israeli airline market.

To celebrate the launch of the Paphos route, Air Haifa is offering a limited-time 30% discount on tickets purchased through its website before midnight on February 19, 2025. This promotional offer is expected to boost demand for the new route and attract more passengers to Haifa Airport, which has seen a resurgence in international traffic.

While Air Haifa continues to grow, the broader Israeli airline market is also undergoing significant changes. El Al, Israel’s flagship carrier, has seen its stock soar by 60% since December 2024, continuing its strong performance despite external challenges. El Al's financial recovery has been remarkable, with profits breaking records and the airline successfully paying down debt. The stock has continued to rise in 2025, with analysts noting that the airline remains undervalued compared to its global competitors.

According to Daniel Alon, managing partner at IBI’s Ram hedge funds, El Al is still "cheap" compared to other major airlines, with a price-to-earnings ratio far below its competitors. He predicts that El Al’s stock will continue to rise, supported by high demand and a stable financial position. El Al has also attracted attention with its potential to announce a dividend distribution, which could further boost its stock value.

However, not everyone shares this optimism. Ori Tuval, CEO of Tuval Investment House, remains cautious, arguing that while El Al’s stock is strong, the high prices of airfares will not sustain long-term profitability as competition from international airlines increases. Despite this, the demand for flights from Israel remains high, particularly for El Al, which has built a loyal customer base by continuing to operate during challenging times, such as the recent regional conflict.

Meanwhile, other Israeli airlines, including Arkia and Israir, are looking to expand their international routes. Arkia is considering launching flights from Ramon Airport, near Eilat, while Russian carrier Red Wings is eyeing direct flights from Ramon to Moscow. The ongoing recovery in the Israeli aviation sector shows promising signs of growth in the coming years.