Philippines Eyes Free-Trade Deal With Israel as Direct Flights Set to Begin

The Philippines hopes a new direct flight between Israel and Manila will help expand bilateral trade and advance efforts toward a free-trade agreement between the two countries.

Israeli airline Arkia announced that it will launch nonstop flights between Tel Aviv and Manila on January 3, 2027, becoming the first Israeli carrier to operate a direct route to the Philippines. The seasonal service will operate once a week through April, flying between Ben Gurion Airport and Manila’s Ninoy Aquino International Airport. 

Philippine Ambassador to Israel Aileen Mendiola said the new connection could create opportunities beyond tourism by making it easier to transport goods between the two countries.

Mendiola said one of her goals is to advance discussions on a free-trade agreement with Israel, adding that increased passenger and cargo traffic could help build the demand needed for such a deal.

Trade between Israel and the Philippines remains relatively limited. Bilateral trade totaled about $362 million in 2025, with semiconductors, electronics and aircraft parts among the main sectors.

The two countries have already taken steps to deepen their economic relationship. Economy Minister Nir Barkat visited the Philippines in July 2025 for talks on trade, investment and technology cooperation. The two governments discussed the possibility of moving toward a free-trade agreement.

Israel and the Philippines have also expanded cooperation in areas including artificial intelligence, cybersecurity, critical minerals and semiconductor technology.

The new route is expected to strengthen tourism as well. Nearly 20,000 Israelis visited the Philippines during the first eight months of 2026, while Israel is home to tens of thousands of Filipino workers, many of whom regularly travel between the two countries.

Arkia CEO Oz Berlowitz said the Manila route forms part of the airline’s broader expansion into long-haul destinations in Asia.

The airline has increasingly targeted destinations in the Far East as it expands beyond its traditional European network, adding Manila alongside routes to destinations including Thailand, Vietnam and Japan.