A new low-cost Israeli airline to rival El Al, Ryanair and Wizz Air is set to start operating.

Air Haifa will operate flights to Eilat, Cyprus, Greece and Turkey from Haifa Airport in northern Israel.

In a statement, the company said: “The planned operations of Air Haifa hold significant promise for the residents of the northern region and Eilat.

"Direct flights from Haifa will contribute to economic development and growth in the northern region, enhancing the quality of life, generating new job opportunities, increasing incoming tourism, and providing convenient access to the city of Eilat from the third-largest metropolitan area in Israel."

It is understood the announcement of the new airline may lead to reduced prices for specific destinations. Currently, El Al, Ryanair and Wizz Air dominate the Israeli aviation market.

The Israeli transportation ministry granted the low-cost carrier a commercial licence to start operating straight away. However, the carrier is looking at launching its operations towards the end of 2024.

Haifa Airport has a relatively short runway, measuring just 1,326 meters, which means the airline will only be able to operate only small aircraft, accommodating approximately 70 passengers.