US EditionPublished • loading... • Updated
Israeli antitrust body to fine El Al $39 million for price gouging during war
El Al’s market share surged from 20% to over 70% after foreign airlines halted flights, enabling fare hikes averaging 16%, the Israel Competition Authority found.
- The Israel Competition Authority today said it intends to impose a NIS 121 million fine on El Al, subject to a hearing and noted this is the maximum allowed by law.
- Within days of October 7, 2023, El Al's market share rose from about 20% to more than 70%, effectively monopolizing flights to and from Israel until May 2024.
- The authority's econometric analysis found average fare increases of about 16%, with route spikes from 6% to 31% and 25% on some flights below 85 seats, supporting its case.
- A final ruling will follow the hearing, after which El Al may appeal in court, as Director‑General Michal Cohen summoned El Al to present its case and reject the claim.
- The fine is small compared with El Al's wartime profits, prompting deterrence questions as the proposed sanction is roughly 24 times less than El Al's wartime net profit $934 million .
Insights by Ground AI
13 Articles
13 Articles
El Al Faces $39 Million Fine for Unfair Airfares During Gaza War
Israel's Competition Authority plans to fine El Al Israel Airlines $39 million for excessive airfares during the Gaza war. From October 2023 to May 2024, El Al operated as a monopoly, raising ticket prices up to 31%. El Al disputes the claim and will contest it at a hearing.
·India
Read Full Article
Regulator: El Al overcharged during Gaza war, faces 121 million shekel fine
The Israel Competition Authority found no legitimate justification for fare increases after October 7, 2023, calling them excessive and unfair. The proposed maximum fine amounts to only 4 percent of the airline's profits since the war began
·Tel Aviv-Yafo, Israel
Read Full Article
Coverage Details
Total News Sources13
Leaning Left1Leaning Right2Center6Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
11%
C 67%
R 22%
Factuality
To view factuality data please Upgrade to Premium
