Regulator to fine El Al up to NIS 121m for price gouging

An investigation by the Israel Competition Authority found that fares rose by an average of 16% during the war, with some routes recording sharper increases of up to 31%.

The Israel Competition Authority today informed El Al Israel Airlines Ltd. (TASE:ELAL) that following its ruling that the company charged excessive and unfair fares for its flights during the war, it plans to impose a financial sanction on it of up to NIS 121 million - the maximum amount allowed by law. The decision is not final and is subject to a hearing in which El Al will be able to present its position.

According to the Israel Competition Authority's announcement, between October 7, 2023 and the end of May 2024, El Al had a de facto monopoly on flights to and from Israel - this after many foreign airlines ceased their operations due to the security situation, and the availability of flights was greatly reduced

In the situation that arose, El Al - alongside other Israeli airlines Arkia and IsraAir - continued to fly, but El Al operated by far the greatest number of flights. Within a few days of the start of the war, El Al's share of all passengers to and from Israel increased from about 20% before October 7 to more than 70%. In the first months of the fighting, El Al carried more than 50% of all passengers using Ben Gurion airport.

According to the Israel Competition Authority's investigation, during this period El Al had a monopoly on at least 38 of the 53 routes it operated, including major destinations such as London, New York, Paris, Bangkok, Tokyo and Los Angeles.

Fares rose by an average of 16%

To check whether fares had indeed risen beyond reasonable amounts, the Authority analyzed data on millions of airline tickets sold by El Al during the war, and compared them with prices in the corresponding period a year previously. The investigation was conducted using economic analyses designed to neutralize other factors that affect prices, such as seasonality or normal demand.

The investigation found that fares rose by an average of 16%, with some routes recording sharper increases of 6% to 31%. In addition, it was found that even on flights that were not full, El Al raised prices by about 25%. About 16% of the company's passengers during the period examined flew on such flights.

Since during the war the ability to enter and exit Israel became an essential necessity, and many passengers were almost completely dependent on El Al with no real alternative, according to the Authority, charging fares that are tens of percent higher constitutes harm to consumers.

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According to the position of the Competition Commissioner, Adv. Michal Cohen, the fare increase during the war was not justified under normal circumstances, and is due to the exploitation of the exceptional market power created by the state of emergency.

The Authority notes that the use of the term "excessive price" is very rare, and in Israel it has only been used once so far - in the case of a life-saving drug.

El Al said, "El Al categorically rejects the claim that it charged excessive prices during the war. Even if the Competition Authority's position is accepted, according to which the rate of fare increase during the war was 16% on average for economy and premium classes (and this is an incorrect figure in our opinion) - there is no precedent for determining that such a price increase reflects excessive pricing. El Al will present its full position at the hearing and in any appropriate legal forum and is convinced that its position will be accepted."

Published by Globes, Israel business news - en.globes.co.il - on February 8, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.