Duty free store opens as Haifa airport tries to take off

At a festive ceremony earlier this week, the first-ever duty free store was opened at Haifa airport by Teddy Sagi’s Layam Group. The 200 square meter store will offer practically all the tax free goods available at Ben Gurion airport but without the long lines to pay.

The reopening of Haifa airport last December was good news for israel’s travel industry and especially resident in the north. If in the past the airport only served aircraft flying out to gas rigs, it is now open to international tourism.

Data from the Israel Airports Authority showed that 67,694 passengers passed through Haifa airport on international flights in the first half of 2025. June was impacted heavily by the operation in Iran and July, August and the holidays are peak season. An additional 21,953 passengers used the airport for domestic flights.

The renewal of international tourism from Haifa airport is due to the operations of Air Haifa, a new airline set up by Nir Zuk. Previously the airport had been virtually abandoned for years, except for occasional operations over a short period of time like that of Cypriot airline TUS.

Air Haifa operates flights to international destinations including Larnaca and Paphos in Cyprus and Athens and Rhodes in Greece as well as domestic flights to Eilat. While Ben Gurion airport is crowded during the peak summer season, passengers at Haifa airport report quick check-in that sometimes takes just 15 minutes.

Eshet Tours VP Shirley Cohen Orkaby explains, “Haifa airport provides an excellent solution for a very significant region of the country and for the residents of the north. It is a small and efficient airport, the waiting time is short, there is no congestion and you do not have to arrive three hours before the flight. The destinations that can be flown to are very popular among Israelis. I really hope that they will invest in it, so that it will be possible to fly larger planes from it.”

Does the additional airport reduce fares?

“Globes’ checked the Air Haifa website and found there are almost no last-minute tickets left for August, especially for return flights. Starting fares for Cyprus in August start at $298 for a round-trip ticket. For September, with the decline in demand, there are round trip tickets for $198. In Greece, fares between destinations vary. Last minute round trip tickets to Rhodes start at $448, and in September fares drop to $298. For Athens, fares are slightly higher, starting at $478 for last minute tickets compared with $358 in September.

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At Ben Gurion airport last minute ticket fares are much higher but in September prices are much more attractive than at Haifa airport because of the much wider choice of destinations.

A major advantage at Haifa Airport over Ben Gurion Airport is the parking at the airport, which is currently free. Although the airport is not directly connected to a train railway, it can be reached via shuttles from the Lev Hamifratz railway station. For residents of the north, travel costs to Ben Gurion Airport may reach amounts that justify choosing a more expensive flight from Haifa, especially if it saves time and other expenses.

Air Haifa will remain alone

Currently, Air Haifa has three ATR 72-600 aircraft. As part of the company’s expansion plan, a fourth aircraft will begin operations in early September, and a fifth aircraft by the end of December. These are aircraft with a relatively small number of about 80 seats, and they were chosen for a reason. Currently, the length of the runway at the airport is too short for large aircraft such as those operated by most airlines – 1,200 meters in total. However, if the runway is extended to 1,500 meters, it would be possible to operate flights from it to nearby destinations and the Greek islands, and if it is extended the runway to 1,900 meters, it will be possible to fly to Europe.

According to Haifa Municipality, the plan to extend the runway at the airport has not been abandoned. The Israel Airports Authority is also working to extend the runway by 300 meters – but even then, its length will not be sufficient for wide-body aircraft. In order to implement the plan, budgetary investment and a new statutory procedure in the planning committees are required – a process that could take years.

There is capacity to operate additional flights

In its current form, the airport has the capacity to operate additional flights, but its limitations in space and infrastructure make it less attractive to many airlines, which will not allow significant competition to exist at the airport. In the foreseeable future, Air Haifa is the only carrier expected to operate flights, and the company plans to expand its fleet of aircraft and add additional destinations in the East Mediterranean region.

In the past, the airport has already proven its importance. During and after the Iran operation, the splitting of flights between two airports, including rescue operations in which Air Haifa also participated, contributed to the operational capacity of the aviation system in an emergency situation.

Published by Globes, Israel business news – en.globes.co.il – on August 14, 2025.

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