Air Canada Resumes Flights to Israel and Vehicle Shipping Could Restart via Suez Canal

Air Canada has announced the renewal of flights to Israel starting June 8, with four weekly flights between Tel Aviv and Toronto. The airline will also resume flights on the Tel Aviv-Montreal route starting in August with one weekly flight. This follows the suspension of operations in October 2023 and multiple extensions of that suspension. Air Canada joins two other U.S. carriers, United Airlines and Delta Airlines, which will resume flights to Israel in March and April, respectively.

For months, El Al was the only airline operating direct flights between Tel Aviv and New York. The return of North American airlines is seen as a positive sign for the country's aviation sector, which has experienced limited international connectivity following the outbreak of conflict in the region.

Meanwhile, the Israeli vehicle industry is preparing for the resumption of direct vehicle shipments from East Asia through the Suez Canal, provided the ceasefire in Gaza holds and regional stability is achieved. Shipping companies, including ZIM Integrated Shipping Services, are cautiously optimistic about returning to direct routes after a suspension in November 2023 due to Houthi attacks and hijackings. This return could offer a competitive edge, significantly reducing shipping time and costs for vehicles arriving from China, Japan, and South Korea.

However, some international shipping companies are still hesitant to resume routes through the Red Sea, citing concerns over regional security and high insurance rates. The situation remains fluid, with the shipping industry closely monitoring developments before making definitive decisions on resuming operations.

The resumption of both airline services and shipping routes represents a gradual return to normalcy for Israel's transport sector amid continued geopolitical challenges.