Air Haifa, a new Israeli low-cost carrier, operated its inaugural international flight on the morning of October 16, flying from Tel Aviv's Ben Gurion Airport to Larnaca, Cyprus, Globes reported. 

The ongoing security situation in northern Israel and across the region has affected the carrier's expansion plans. Air Haifa spokesperson Yael Cohen stated, "Our original intention to operate from Haifa airport has been postponed until 27 October, pending a thorough security assessment and necessary approvals."

Despite the challenging environment amid Israel's ongoing war in Gaza and Lebanon, Air Haifa is not alone. Romanian low-cost airline Bees Airways, which received its operating license just six months ago, is also set to begin services to and from Israel.

The aviation industry in Israel is facing significant headwinds. The return flight from Larnaca was nearly empty, an unusual occurrence during the peak travel season. This low demand is attributed to the recent security escalation and extensive military reserve call-ups.

Aviation sources indicate that demand has fallen in advance of the Sukkot holiday despite expectations of peak demand in this period. The military escalation in the past month and the extensive drafting of reserve soldiers have affected the considerations of Israelis in deciding whether to travel.

Adding to the complex operating environment, Ben Gurion Airport has reported a sharp increase in passengers attempting to board flights with weapons in their hand luggage. This surge is linked to heightened security tensions and an increase in civilian gun ownership.

The European Union Aviation Safety Agency (EASA) recently lifted its recommendation against flying in Israeli airspace, which had been issued following geopolitical events in late September. Despite this, several airlines, including Air France, Neos, and Aegean, have extended their suspension of flights to Israel, joining Wizz Air and Lot in pulling back from the market.

Regional airlines have been in a state of flux in recent months following intra-Middle East attacks between Iran and Israel. Earlier on October 6, Iran cancelled all flights at all airports from 9 p.m. on October 6 to 6 a.m. on October 7, amid increasing military tensions with Israel.

Iran fired around 200 ballistic missiles at Israel, in a move that it said was a response to the assassination of Hamas chief Ismail Haniyeh in Tehran on July 31, which it blames on Israel.

The result has seen Iranian airlines entirely banned from European airspace, including flag carrier IranAir, which historically operated flights to Cologne, Paris and London.