Dozens of participants of the flytilla planned on landing en masse at Tel Aviv's Ben-Gurion Airport Sunday, until Lufthansa German Airlines canceled their tickets Thursday, The Jerusalem Post reported.
The airline notified passengers their reservations had been canceled "by order of Israel" and that they would be refunded for their tickets.
The event is being organized by #Airflotilla2, an online campaign supporting "Welcome to Palestine 2012," the event's umbrella group.
Organizers said were told by the airline, "Israel produced a list of names of persons to whom this country denies entry," and their names were on the list.
The activists said they would continue with the action anyway, because they had done nothing wrong and "do not accept these mafia-methods favored by governments complicit in the imprisonment of the Palestinian people."
"Welcome to Palestine 2012" calls on activists to "challenge Israel's policy of isolating the West Bank while the settler paramilitaries and army commit brutal crimes against a virtually defenseless Palestinian civilian population," group's Web site states.