Air Canada returns to Israel with a 30% price increase
The airline is bringing forward the resumption of its Toronto route to November 30, but December economy fares average $1,155. Business-class travelers could save nearly $3,000 by flying with a stopover.
Direct flights between Israel and Canada are set to resume at the end of this month, but travelers will pay significantly more than they did a year ago. A round-trip economy ticket from Tel Aviv to Toronto with Air Canada will cost an average of $1,155 this December, approximately 30% more than in December 2025, according to a price analysis by lastminute.co.il.
The analysis found that flights involving a layover could be up to 16% cheaper, while business-class passengers could save as much as $2,900 by choosing a connecting flight.
Air Canada is scheduled to resume its direct route between Toronto and Ben Gurion Airport on November 30, operating four flights per week. The airline suspended the service in March amid the war with Iran and has brought forward its return from the previously announced date of January 17, 2027.
Since the suspension, Israel has had no direct air connection with Canada, leaving passengers dependent on connecting flights. Although the return of United Airlines and Delta Air Lines in September has increased competition on routes to the United States, Air Canada remains the only carrier offering direct flights between Tel Aviv and Toronto.
A price check on lastminute.co.il for round-trip flights in December 2026, including baggage, found that Air Canada tickets in economy class cost an average of $1,155. That compares with approximately $890 for bookings with the same airline in December 2025, an increase of about 30%.
Among connecting options, British Airways offers an average fare of $968, while Lufthansa's average is $990. These prices are approximately 16% and 14% lower, respectively, than Air Canada's direct service. Other options are more expensive: Delta's average fare stands at $1,270, while Austrian Airlines charges approximately $1,300. The total journey times for the routes examined range from 13 to 18 hours.
The price differences are considerably greater in business class. An average ticket with Air Canada costs approximately $6,700, compared with $3,777 with British Airways and $3,870 with Lufthansa. The potential savings can therefore reach roughly $2,900, although some itineraries, particularly those involving Austrian Airlines, require two layovers.
“The return of the route improves accessibility to Canada, but direct flights still depend on a single carrier,” said Asaf Grinberg, vice president of marketing at lastminute.co.il. “Competition comes from routes involving a stopover, and the data shows that the implications vary by class. In economy class, the savings may be too small to justify a longer journey for some passengers. In business class, however, the price gap provides a significant economic incentive to consider a connecting flight. The return of direct flights is good news for travelers, but it does not necessarily signal a drop in prices.”
