Israel Antitrust Authority Plans Record Fine Against El Al Over Wartime Airfares

The proposed penalty, which would be the largest permitted under Israeli law, follows a review of the period between October 7, 2023 and May 2024. According to Reuters, the antitrust regulator determined that El Al effectively operated as a monopoly on 38 of the 53 routes it maintained during that time, including key destinations such as New York, London, Paris and Bangkok, as well as other cities across the United States, Europe and Asia.

Per to Reuters, the authority found that airfares climbed by an average of 16%, with some routes experiencing increases of up to 31%. The regulator noted that as many foreign airlines suspended service to Israel in the early stages of the conflict, El Al gained substantial market power. The authority said that this dominance enabled the airline to raise prices while travelers had limited alternatives.

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In its statement, the Competition Authority 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 further 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.”

The regulator also pointed to evidence that even after some foreign carriers gradually resumed flights, ticket prices did not significantly decline. According to Reuters, many passengers continued to book with El Al due to concerns about potential cancellations by other airlines, reinforcing the company’s dominant position.

El Al rejected the allegations. In a statement, the airline said it “categorically rejects” the claim that it charged excessive prices during the war. Addressing the regulator’s findings, the company 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.”

The carrier also stated: “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,” referencing a forthcoming hearing on the matter.

The Competition Authority emphasized that determinations of excessive pricing are uncommon and approached cautiously by regulators around the world. Smaller Israeli airlines, including Arkia and Israir, also continued operations during the conflict, though the regulator’s review focused on El Al’s market share and pricing conduct.

The case comes amid strong financial results for the airline. El Al reported that net profit for 2024 surged nearly fivefold to a record $545 million. For the first nine months of 2025, the company posted earnings of $364.1 million. According to Reuters, the airline’s wartime performance and elevated ticket prices drew criticism from passengers who accused it of price gouging during a period of national crisis.

Source: Reuters