El Al Denies ‘Excessive’ Pricing as It Gears Up to Fight Regulator’s Fine

The penalty, which represents the maximum allowed under Israeli law, stems from a months-long investigation covering the period between October 7, 2023, when Hamas attacked Israel, and the end of May 2024. According to a statement from the regulator, the inquiry focused on pricing practices during a time when many foreign airlines suspended flights to and from Israel.

The Competition Authority concluded that El Al effectively held a dominant position on 38 of the 53 routes it operated during that period, including major destinations such as London, Los Angeles, New York, Paris and Tokyo. Per a statement from the authority, ticket prices rose by an average of 16% compared with the previous year, with some routes seeing increases of up to 31%. Investigators also found that fares on certain economy-class flights were raised by roughly 25% even when planes were not fully booked.

El Al has strongly rejected those findings and indicated it will challenge the regulator’s conclusions at a formal hearing and, if necessary, through legal channels. The airline said it “categorically rejects” the claim that it charged excessive prices during the war.

In a statement addressing the proposed penalty, the company said, “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.”

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

The airline further 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.” The comments signal the carrier’s intention to appeal or otherwise fight the fine should it be formally imposed.

According to a statement from the Competition Authority, the enforcement action is justified because “El Al’s price increases were excessive and unfair.” The regulator also emphasized that freedom of movement into and out of Israel is a fundamental right, noting that during the initial stages of the war many consumers relied heavily on the national carrier for international travel.

“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 authority said.

The regulator added that although some foreign airlines gradually resumed service, this did not result in significant fare reductions, as many passengers opted to book with El Al due to concerns about potential cancellations, according to a statement outlining the findings.

The Competition Authority noted that determinations of excessive pricing are made sparingly and cautiously by competition watchdogs worldwide. Smaller Israeli carriers Arkia and Israir also operated during the conflict, though the investigation centered on El Al’s pricing on key international routes.

Source: Skift