JERUSALEM: Israel’s competition authority announced on Sunday that it plans to fine flag carrier El Al Israel Airlines 121 million shekels ($39 million) for setting excessive and unreasonable airfares during Israel’s war in Gaza.
The fine is the maximum amount allowed by law.
The antitrust agency announced that an investigation into the period from October 7, 2023 to May 2024 found that El Al operated exclusively on 38 out of 53 routes, including flights to New York, London, Paris, Bangkok, and other destinations in the United States, Europe, and Asia.
The report found that ticket prices rose by an average of 16% and up to 31%, and noted that airlines “retained market power” as most foreign airlines suspended operations.
El Al said it “categorically rejects” claims that it charged exorbitant prices during the war.
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“Even if we accept the competition authority’s position that the average price increase during the war was 16%…a figure that we consider inaccurate, there is no precedent for determining that such an increase constitutes excessive pricing,” the agency said in a statement.
“El Al has expressed its full position in public hearings and other appropriate legal forums and is confident that its position will be accepted,” it added, referring to further hearings on the case.
“El Al’s price hikes are excessive and unjustified and warrant enforcement action by competition authorities,” the antitrust agency said in a statement, adding that freedom of movement into and out of Israel is a fundamental right.
“In the context of war, the exercise of this right became invaluable, especially during the first months of hostilities…Consumers became almost entirely dependent on El Al for their most important essential services.”
No sign of fare reduction
The report said that despite the gradual return of some foreign airlines, evidence shows that this has not translated into lower airfares, as many consumers preferred to purchase tickets on El Al due to fear of flight cancellations.
The agency noted that findings of “excessive price gouging” are rarely used judiciously by competition authorities around the world.
Israel’s small aircraft carriers Arkia and Israel also operated during the war.
El Al Airlines posted a nearly five-fold jump in net profit to a record $545 million in 2024, with many passengers accusing the airline of price gouging. In the first nine months of 2025, it generated revenue of $364.1 million.
($1 = 3.1190 shekels) (Reporting by Stephen Scheer; Editing by David Holmes)
