El Al Sued for $169M Over Wartime “Price Gouging” Amid National Crisis

A class action lawsuit was filed against El Al Israel Airlines in Lod District Court, accusing the national carrier of exploiting the Iron Swords war to inflate ticket prices, reaping massive profits during a national crisis. The lawsuit, led by attorney Ilan Verdnikov and supported by Dr. Tal Rotman and Adi Zitron of the Pearl Cohen law firm, seeks 600 million shekels ($169 million) in damages. It claims, “The price gouging of an essential and irreplaceable service during an emergency by a monopolist, whose goal is to fill the pockets of the monopoly, its employees, and its shareholders with billions of shekels at a time when thousands of Israeli citizens and soldiers are being murdered, killed, kidnapped, affected, and injured in war is a low, defective, illegal, unjust, and immoral action worthy of all condemnation.”

Following Hamas’s October 7, 2023, attack, which killed 1,200 and triggered the ongoing war, most foreign airlines suspended flights to Israel, leaving El Al as the dominant carrier. The lawsuit alleges El Al abused this near-monopoly to unjustly hike prices, stating the airline “became a monopoly on most air routes it operates and abused its position to inflate flight prices in an illegal, unethical manner.” Data shows El Al’s 2024 net profit soared to $554 million, potentially $771 million after adjustments, compared to $113 million in 2023, surpassing its cumulative profits from the prior 15 years. The suit estimates customer damages at $483 million, plus $115 million in non-monetary harm.

Professor David Gilo, former Israel Competition Authority director, provided economic analysis, noting El Al held monopoly status on 20 of 24 routes, with market shares often exceeding 50%. “There was no rise in El Al’s costs to justify the increased flight prices. On the contrary, costs fell in 2024 by 3% compared to 2023,” Gilo stated, adding that profit margins per passenger kilometer surged 15-fold, reaching 28.5% in 2024. Despite receiving millions in government aid during the COVID-19 pandemic to avoid bankruptcy, El Al’s actions have sparked public outrage, with the Israel Competition Authority and Consumer Protection Authority investigating, though limited in enforcing restitution.