Ben Gurion Airport's Terminal 1 Reopens and Israel's Economic Resilience Shines

Ben Gurion Airport's Terminal 1 is set to reopen at the end of March, following extensive renovations that began last November. Initially serving domestic flights, the terminal will soon accommodate low-cost international carriers as well. With an estimated 25% of all flights at Ben Gurion expected to use Terminal 1, this marks a significant development for Israel's aviation industry, with around 1,377 flights projected to operate through the terminal in April.

As a cost-effective option, Terminal 1 is particularly important for airlines looking to reduce operating expenses. The terminal offers lower taxes and more basic services, making it approximately $20 cheaper per passenger compared to Terminal 3. El Al, Wizz Air, Ryanair, Arkia, and Israir are among the carriers expected to operate out of Terminal 1, with Wizz Air leading the pack with 110 weekly flights.

The reopening of Terminal 1 follows two closures over the past year due to a drop in airline activity tied to Israel's ongoing security situation. However, with operations ramping back up, the terminal is set to support increased connectivity for both domestic and international travel. Though many are optimistic about the change, experts suggest that no immediate fare reductions are expected due to the costs associated with moving operations between terminals.

Meanwhile, Israel's aviation industry is experiencing a surge in activity. The Lufthansa Group has nearly doubled its weekly flights to Tel Aviv, while Wizz Air is resuming routes to Greece, and other airlines such as Air Europa and Aviation Links are expanding services to Israel.

Israel’s Economic Resilience Amidst Adversity

While Terminal 1's reopening signals a positive shift for Israel’s transportation sector, the country’s broader economy is also showing resilience despite the ongoing security challenges. A recent meeting organized by Israel Bonds explored Israel's economic stability in the face of adversity. Despite nearly 16 months of multifront war, Israel’s economy is stabilizing and positioning itself for growth.

Israel Bonds have played a critical role in providing liquidity and maintaining investor confidence. Since the onset of the October 7, 2023 attacks, Israel Bonds raised a record $3.7 billion globally—three times the average annual sales. These funds are essential in ensuring the country’s economic recovery. Additionally, the Tel Aviv Stock Exchange has shown remarkable stability, with foreign investment returning as confidence in Israel’s financial resilience grows.

Experts remain optimistic, pointing to strong economic fundamentals and a thriving startup ecosystem. Israel’s leading position in sectors like AI, MedTech, and cybersecurity has bolstered the country’s economic outlook, positioning it for robust future growth.

Challenges and Opportunities in Rebuilding the Periphery

Looking forward, one of the primary challenges Israel faces is the rehabilitation of its border communities. The war has caused significant damage to infrastructure, and rebuilding these areas is critical for economic recovery. However, this challenge presents an opportunity for accelerated development in Israel’s periphery, providing long-term economic benefits for the nation.