The Competition Authority of Israel announced on Sunday that it would impose a fine of 121 million shekels (39 million dollars) on flag carrier El Al Israel Airlines on allegations of charging excessive and unfair airfares during the Israel-Gaza war. The maximum permitted fine is specified in the law.
The antitrust agency reported that it had examined the time frame between October 7, 2023, and May 2024 and discovered that El Al was running a monopoly on 38 of the 53 routes that it recorded with destinations to New York, London, Paris, Bangkok, and other cities in the United States, Europe, and Asia.
It was discovered that the average ticket prices had increased by 16 percent, and up to 31 percent, observing that a majority of the foreign airlines had suspended their services, “held market power.”
However, El Al stated that it “categorically rejects” the claim that it charged excessive prices during the war.
In a statement, it added, “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 reported, citing a further hearing on the case, “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.”
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.”
It also stated, “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.”
It claimed that its evidence demonstrated that, although some foreign airlines were gradually returning, this did not result in reduced airfares, as many customers tended to buy El Al tickets in the event of flight cancellations.
The authority indicated that the 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 recorded almost five times higher net profit of a record of $545 million, and many passengers have accused the carriers price gouging. During the first nine months of 2025, it made $364.1 million.
