US EditionIsraeli antitrust body to fine El Al $39 million for price gouging during war
El Al's market share surged from 20% to over 70%, with average fares rising 16% during the Gaza war, prompting Israel Competition Authority to plan the maximum fine of NIS 121 million.
- 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 .
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Israeli antitrust body to fine El Al $39 million
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 war on Gaza. The fine is the maximum allowed by law. 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, Lo…
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.
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
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