El Al faces record $39 million fine for wartime price gouging

El Al has rejected the price-gouging allegations, saying the reported 16% average increase in economy and premium fares “does not constitute excessive pricing.”

By Pesach Benson, TPS

The Israel Competition Authority notified El Al that it intends to impose the maximum legal fine of NIS 121 million ($39 million), alleging the airline charged “excessive and unfair” fares during the war with Hamas.

The proposed penalty, which would go to the state treasury, is not yet final and will be decided after a formal hearing, where Israel’s national carrier is expected to contest the claim.

The regulator’s investigation focused on the period from the outbreak of war on October 7, 2023, through May 2024, when many international airlines suspended flights to Israel.

The authority concluded that El Al effectively monopolized air travel to and from the country during those months, using its dominant position to maintain unusually high ticket prices.

El Al has rejected the price-gouging allegations, saying the reported 16% average increase in economy and premium fares “does not constitute excessive pricing” and that it will present its full argument at the hearing.

The airline noted that it recorded record revenues of $3.4 billion in 2024—up roughly 37% from the previous year—with a net profit of $545 million, largely driven by its control of routes to North America, where it held a 97.5% market share and flights reached 96% occupancy amid the absence of foreign carriers.