El Al faces $39 million fine after monopoly ruling on wartime pricing
In 2024, the airline posted revenues of $3.4 billion, up about 37% from the previous year, and reported a net profit of $545 million
Israel’s Competition Authority has announced plans to impose a NIS 121 million ($39 million) fine on El Al, accusing the national airline of exploiting its dominant position by charging excessive fares during the Gaza war.
According to the regulator, El Al effectively became a monopoly on flights to and from Israel between October 7, 2023, and May 2024, after most foreign airlines halted service following the Hamas attack.
The authority said it will formally declare El Al a monopoly for that period, subject to a hearing, and seek to levy the maximum fine permitted under law.
Investigators found that El Al’s market share rose sharply in the immediate aftermath of October 7, jumping from about 20% before the war to more than 70% within days. During the first months of the conflict, its share consistently exceeded 50%, leaving travelers with few alternatives.
The Competition Authority said this dominance enabled the airline to maintain unusually high prices over roughly seven months.
Average ticket prices increased by around 16%, according to the findings, with fare hikes on major routes ranging from 6% to as much as 31%. The authority described the pricing as “excessive and unfair” under Israeli competition law.
El Al has denied the allegations, arguing that a 16% average rise in economy and premium fares does not constitute price gouging. The airline said it will present detailed data and arguments during the hearing process to contest both the monopoly designation and the proposed fine.
The move comes amid record financial results for El Al. In 2024, the airline posted revenues of $3.4 billion, up about 37% from the previous year, and reported a net profit of $545 million.
The strong performance was driven largely by its control of key routes, particularly to North America, where it held a 97.5% market share and flights operated at roughly 96% capacity due to the prolonged absence of foreign carriers.
A final decision on the fine will be made after the hearing. If upheld, the penalty would rank among the largest ever imposed by Israel’s Competition Authority.
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