Europe's biggest airline Ryanair may exit Israel for good, CEO Michael O’Leary warned, citing fee disputes and war-driven travel chaos, a stark sign that Israeli Prime Minister Benjamin Netanyahu’s Gaza war is battering Israel’s economy.
Speaking at the company's annual general meeting, O’Leary said that Ryanair, Europe's biggest airline, may exit Israel even after violence related to the war in Gaza recedes, blaming a row over airport fees.
Ryanair flights have been cancelled in Israel due to safety concerns, O'Leary said, adding his airline may walk away from the country for good as it was being "messed around" by airport authorities there.
Earlier in summer, the airline said it would not return to Israel until October 25 in line with many international carriers, which have halted flights due to the conflict in the region.
"I think there's a real possibility that we won't bother going back to Israel," he said.
"Unless the Israelis kind of get their act together and stop messing us around, frankly, we have far more growth elsewhere in Europe," he added.
Ryanair objects to the fact that Tel Aviv's Ben Gurion Airport charges it a higher rate for use of the main terminal when the cheaper low-cost terminal is closed for security reasons, O'Leary said.
He said Ryanair would start flying back to Jordan this month or next.
Threats bite
Israel’s ongoing brutal war on Gaza has triggered escalating attacks and threats from Yemen’s Houthis, which says its strikes at Israeli airports and infrastructure as solidarity with the Palestinians who are going through the genocidal war.
These attacks have forced repeated airspace closures, disrupted international flights, and prompted major carriers, like Ryanair, to suspend operations to and from Israel, severely undermining its tourism and aviation sectors.
Beyond aviation, investor confidence has eroded amid growing regional instability, fuelling capital flight, currency volatility, and a slowdown in foreign direct investment.
Shipping routes to Israel’s Red Sea ports have also become riskier and costlier as insurers raise premiums, further inflating import costs and disrupting supply chains.
Together, these pressures are compounding Israel’s mounting wartime expenditures, contributing to widening budget deficits and slowing overall economic growth.
After striking targets in Qatar two days ago, Netanyahu and Israeli officials warned they are prepared to launch attacks anywhere in the region if deemed necessary. Such threats risk further destabilising the region while continuing to weigh on Israel’s economy.
