El Al under scrutiny for price gouging during wars
The investigation, spanning two years, is expected to reveal whether El Al engaged in what regulators describe as cynical exploitation
The Israeli Competition Authority has concluded its investigation into whether El Al Airlines exploited the ongoing war to raise ticket prices excessively.
Officials are now considering imposing fines on the airline’s senior executives, in addition to potential penalties amounting to tens of millions of shekels for the company itself.
The probe, which began shortly after most foreign carriers withdrew from Israel and left El Al with a temporary monopoly, examined whether the airline abused the situation at the expense of consumers.
The investigation, spanning two years, is expected to reveal whether El Al engaged in what regulators describe as cynical exploitation.
If violations are confirmed, the Competition Authority could initiate administrative enforcement proceedings, with fines calculated based on the airline’s cash flow, potentially reaching the maximum statutory limit.
The issue has drawn public outrage, as ticket prices surged by several dozen percent during the conflict. Last June, a class-action lawsuit was filed against El Al, accusing it of “exploiting an unprecedented national tragedy to generate enormous profits at the expense of its customers.” The complaint described the alleged actions as “vile, unacceptable, illegal, unjust, and immoral,” targeting a monopoly that profited while thousands of Israeli citizens and soldiers were affected by the war.
El Al reported a net profit of approximately $554 million in 2024, or $771 million when accounting for subsidies and tax adjustments, up sharply from $113 million in 2023.
The Competition Authority’s final conclusions are expected to determine whether both the company and its executives will face significant legal and financial consequences.