Israel’s Competition Watchdog Fines El Al for “Unfair” Prices

Israel’s Competition Authority said it plans to fine El Al, the flag carrier of Israel, 121 million shekels (about $39 million), the maximum allowed by law, for allegedly charging “excessive and unfair” airfares during the Israel-Gaza war.

The regulator reviewed the period from October 7, 2023, through May 2024 and said that, as many foreign airlines stopped flying, El Al effectively became a monopoly on 38 of its 53 routes, including major links such as New York, London, Paris, and Bangkok.

Fewer choices, higher prices

For the travel industry, this case is about what happens when a country’s air links shrink overnight. Since October 2023, many international airlines have suspended or reduced service to Tel Aviv for safety and operational reasons, cutting seat capacity and leaving travelers with fewer choices.

The regulator says El Al’s average ticket prices rose about 16 percent in that period (with some routes higher), and that prices stayed firm even when some airlines gradually returned because many passengers paid extra for El Al’s perceived reliability and lower cancellation risk.

A rare competition claim and El Al’s response

Competition authorities rarely pursue “excessive pricing” cases because proving that a price is not just high but also unfairly high is difficult. Regulators also worry about becoming de facto price setters.

El Al says it categorically rejects the accusation and argues that even if the average increase was 16 percent, that alone does not establish illegal “excessive pricing,” and it plans to argue its case in a hearing and, if needed, in court.

A hearing, then a final decision

This is an intent to fine, not the final word. The next step is a formal hearing, where El Al can present evidence and legal arguments before any decision is finalized.  The backdrop also matters: El Al reported record profitability in 2024 while many foreign airlines were absent, which fueled public anger and helped put pricing under a spotlight.

Airlines have been under heavier regulatory scrutiny lately. For example, in December 2025, Italy’s competition authority fined Ryanair about €255.8 million (around $300 million) over an “abusive” strategy that allegedly made it harder for travel agencies to sell its flights.

Photo by Alexander Maron on Unsplash