El Al Faces Potential Fine of 121 Million Shekels for Excessive Pricing
The Competition Authority plans to fine El Al 121 million shekels for charging unfair prices during the "Iron Swords" war. An investigation revealed the airline's market share surged from 20% to over 70% as ticket prices rose by an average of 16%.
The Competition Authority has notified El Al of its intention to impose a fine of 121 million shekels after an investigation found the airline charged unfair prices for flights since the outbreak of the "Iron Swords" war on October 7, 2023.
El Al became a temporary monopoly on flights to and from Israel, taking advantage of the situation as foreign airlines canceled their routes.
During the war, El Al's ticket prices rose by an average of 16%, with increases for major destinations ranging from 6% to 31%. Prices also increased by 25% on flights that were not fully booked.
The investigation revealed that El Al's market share jumped from about 20% to over 70% in just a few days, and it held a monopoly on at least 38 of 53 examined flight routes.
El Al strongly denies the claims, asserting that even if the price increase is considered 16%, there is no precedent for labeling such an increase as excessive. They intend to present their full position at the hearing.
El Al reported a 7% increase in revenues in Q3 2025, amounting to 1.074 billion dollars, with a net profit of 203 million dollars. However, this represents a 13% decrease in profits compared to the same period in 2024.
El Al must explain its position at the hearing before any final decision on the fine is made.