Israeli antitrust body to fine El Al $39 million for price gouging during war

The Israel Competition Authority announced on Tuesday its intention to impose a record-breaking fine of 145 million shekels ($39 million) on the national carrier El Al Israel Airlines for allegedly exploiting its market dominance during the ongoing regional conflict. The antitrust regulator’s decision follows an intensive investigation into the airline's pricing strategies between October 2023 and early 2024, during which El Al face accusations of price gouging. As international competitors suspended operations to Tel Aviv due to security concerns following the outbreak of war, El Al remained one of the few active carriers, creating a near-monopoly on several critical routes that the government claims was used to inflate ticket costs artificially. Evidence gathered by the Competition Authority suggests that the airline capitalized on the lack of competition to maximize profit margins at a time when Israeli citizens were desperate to return home or travel abroad for emergency reasons. The proposed fine is the highest ever sought by the agency against a single corporation, reflecting the severity of the allegations. According to regulators, El Al’s behavior violated fair competition laws designed to protect consumers from predatory pricing during national emergencies, specifically targeting those who had no alternative but to use the national carrier. In response to the announcement, El Al has vehemently denied the allegations of misconduct, claiming that its pricing remained within reasonable bounds considering the increased operational risks and insurance costs associated with flying into a conflict zone. The airline argued that it performed a vital national service by maintaining a bridge to the world while others fled the market. However, consumer advocacy groups and government officials have pointed to the company's surging quarterly profits as evidence of opportunism. El Al now has the right to a hearing before the Competition Commissioner to appeal the decision before the fine is finalized and enforced.