Israel doesn’t plan to compensate travelers stranded by Iran war cancellations, says ministry

Sharon Wrobel is a tech reporter for The Times of Israel

Illustrative: The empty departure hall at Ben Gurion Airport near Tel Aviv after Israel closed its airspace to takeoff and landing following strikes on Iran, June 13, 2025. (Jack GUEZ / AFP)
Illustrative: The empty departure hall at Ben Gurion Airport near Tel Aviv after Israel closed its airspace to takeoff and landing following strikes on Iran, June 13, 2025. (Jack GUEZ / AFP)

The Finance Ministry says it opposes a compensation plan for Israeli passengers whose flights were canceled due to the closure of the skies during the war with Iran.

Speaking at a meeting of the Knesset Economics Affairs Committee, Finance Ministry representative Daniel Schwartz states that the decision follows a review of data on a proposed framework that would compensate passengers and airlines that suffered losses during the closure of Israel’s airspace.

“Following meetings with industry officials and discussions with senior officials, the finance minister decided to oppose any compensation for the aviation industry,” says Schwartz.

Knesset Economics Affairs Committee chairman MK David Bitan calls Finance Minister Bezalel Smotrich’s decision “unreasonable given the circumstances,” and urges Prime Minister Benjamin Netanyahu to step in and resolve the dispute between the finance and transportation ministers.

“It’s a scandal,” says Bitan. “The state will not be able to get away without payment — it will take time, but the state will have to bear responsibility.”

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