The Government of Israel has approved up to ILS55 million shekels (USD18 million) to compensate local airlines for recognised costs incurred in repositioning flights during the joint United States-Israeli military campaign against Iran, according to a transport ministry statement dated July 15, 2026.

Since the start of the war, airlines have operated evacuation flights to park aircraft abroad because of security and operational restrictions. The authorities also capped passenger numbers on departing flights and limited how long aircraft could remain at Tel Aviv Ben Gurion, while US military aircraft occupied part of the airport's available parking capacity.

The Civil Aviation Authority of Israel has been tasked with establishing the compensation mechanism with the finance ministry. The final criteria and individual allocations have not been disclosed.

Airlines can claim 33.5% of recognised expenses under the first tranche if they do not distribute dividends to shareholders for one year. They can receive further reimbursement of up to 33.5% if shareholders inject equity equal to the state’s additional contribution. The scheme could therefore cover approximately 67% of recognised expenses, subject to the ILS55 million aggregate cap for 2026.

As previously reported by ch-aviation, an earlier proposal provided for the government to cover 70% of overseas aircraft parking costs. It was expected to cost between ILS50 million and ILS100 million (USD16.4-32.8 million), with El Al Israel Airlines, Arkia Israeli Airlines, Israir, and airHaifa set to benefit.

The earlier proposal covered only overseas parking fees but excluded losses from cancellations and other operational disruptions. The latest statement now recognises parking fees as well as ferry flight costs.