United Airlines Holdings Inc UAL has announced plans to restart direct flights to Israel, becoming the first U.S. carrier to do so since the Gaza war in October.
What Happened: United Airlines intends to resume direct flights to Israel in early March, making it the first U.S. airline to do so since the Hamas attack on southern Israel on Oct. 7, reported Reuters. The other two major U.S. carriers, American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL, had also suspended their services to Israel following the attack.
United Airlines, based in Chicago, will restart its flights from Newark to Tel Aviv next month. However, it does not plan to resume flights from other U.S. cities until at least the fall. The airline aims to reinstate daily nonstop service to Tel Aviv from Newark on Mar. 6, using a Boeing 787-10.
Lufthansa, Swiss, Austrian, Aegean, and Air France are among other airlines that have restarted flights to Tel Aviv.
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The decision to restart U.S. carrier flights to Tel Aviv could signal a turning point for travel to Israel, which had seen a significant drop in tourism due to security concerns following the Hamas attack and the subsequent Israeli bombardment of Gaza.
United said it “conducted a detailed safety analysis in making this decision, including close work with security experts and government officials in the United States and Israel.”
The Israeli Embassy in Washington did not immediately respond to Benzinga's request for comment.
Why It Matters: The resumption of flights to Israel by U.S. carriers is a significant development following the events of October. Several global airlines, including United, had suspended their flights to Tel Aviv due to security concerns after the Hamas attack. The decision to resume flights could indicate an improvement in the security situation in the region.
However, the situation in Israel remains complex. The World Food Program recently suspended food deliveries to northern Gaza due to escalating chaos, raising concerns about a potential famine. In response to the rising tensions, the United States proposed a UN resolution for a ceasefire in Gaza, marking a significant shift in its approach to the Israel-Hamas conflict.
Price Action: UAL shares closed 1.36% higher at $44.05 on Wednesday, according to the data from Benzinga Pro.
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