Israel Advances Tel Aviv Airport Expansion

Israel is moving forward with an expansion of Ben Gurion Airport’s Terminal 3 in Tel Aviv, signaling confidence in the long-term recovery of the country’s aviation sector.

Israel Airports Authority (IAA) has issued a public tender for the project, which will add a new eastern passenger terminal spanning about 50,000 m2 (538,000 ft.2) and a two-level underground facility of around 20,000 m2 to house baggage handling and security screening systems.

According to the tender documents, the expansion will include new airline check-in areas, restaurants, offices and commercial space designed to increase processing capacity and improve the passenger experience. The project remains subject to planning approval before construction can begin.

The tender, published July 1, describes the work as the eastern expansion of Terminal 3 and confirms it will be awarded through a single-stage procurement process. It also states that construction cannot commence until a building permit has been secured.

Since the Hamas attacks of Oct. 7, 2023, and the subsequent war in Gaza, Tel Aviv has experienced repeated disruptions as foreign airlines suspended service because of security concerns. The airport faced further operational challenges earlier this year after Israeli and U.S. strikes on Iran triggered retaliatory missile attacks, prompting temporary airspace closures, widespread flight cancellations and restrictions on airport operations.

Israel gradually reopened its airspace following a ceasefire, but many international airlines have been cautious about returning. Analysis of OAG Schedules Analyser data shows Ben Gurion is scheduled to offer approximately 1.32 million departing seats in July 2026, about 29% more than July 2025 when the airport offered about 1.03 million seats.  However, the recovery has been led primarily by Israeli carriers.

El Al Israel Airlines remains by far the airport’s largest airline, accounting for about 425,000 departure seats in July 2026. Israir and Arkia each offer about 181,000 seats.

Ben Gurion had about 1.49 million departing seats in July 2023, before international airlines began withdrawing services following the outbreak of the Gaza war. Capacity fell sharply during 2024 and remained broadly flat through much of 2025.