By Steven Scheer JERUSALEM, Feb 8 (Reuters) - Israel's Competition Authority said on Sunday it planned to levy a fine of 121 million shekels ($39 million) on flag carrier El Al Israel Airlines for
El Al Airlines Faces $39 Million Fine for Price Gouging Amid War
El Al's Price Gouging Allegations
By Steven Scheer
Details of the Fine
JERUSALEM, Feb 8 (Reuters) - Israel's Competition Authority said on Sunday it planned to levy a fine of 121 million shekels ($39 million) on flag carrier El Al Israel Airlines for setting excessive and unfair airfares during Israel's Gaza war.
El Al's Response
The fine is the maximum allowed by law.
Impact on Consumers
The antitrust body said it reviewed the period from October 7, 2023, through May 2024 and found that El Al operated as a monopoly on 38 of the 53 routes it operated, including to New York, London, Paris, Bangkok and other cities in the United States, Europe and Asia.
Market Context
It found that ticket prices rose by an average of 16% - and as much as 31% - noting that since most foreign carriers had halted flights, the airline "held market power".
El Al said it "categorically rejects" the claim that it charged excessive prices during the war.
AIRLINE TO ARGUE CASE AT FUTURE HEARING
"Even if the Competition Authority's position is accepted, according to which the average price increase during the war was 16% ... a figure we consider incorrect, there is no precedent for determining that such an increase constitutes excessive pricing," it said in a statement.
"El Al will present its full position at the hearing and in any appropriate legal forum, and is confident that its position will be accepted," it added, referring to a further hearing on the case.
In a statement the antitrust body said: "El Al's price increases were excessive and unfair and justify enforcement action by the Competition Authority, adding that freedom of movement to enter and leave Israel is a fundamental right.
"Under the circumstances of the war, exercising this right became immeasurably more important, especially during the first months of fighting ... Consumers became almost completely dependent on El Al for an essential service of the highest importance."
NO SIGN OF LOWER FARES
It said its evidence showed that despite the gradual return of some foreign airlines, this did not lead to lower airfares since many consumers preferred to purchase tickets from El Al for fear of flight cancellations.
The authority noted that findings of "excessive price gouging" are used rarely and cautiously by competition authorities worldwide.
Smaller Israeli carriers Arkia and Israir also operated during the war.
El Al in 2024 posted a nearly five-fold increase in net profit to a record $545 million, with many passengers accusing the carrier of price gouging. For the first nine months of 2025 it earned $364.1 million.
($1 = 3.1190 shekels)
(Reporting by Steven Scheer; Editing by David Holmes)
