Israel's antitrust regulator has moved to impose the maximum penalty allowed by law on El Al Israel Airlines, saying the carrier charged excessive and unfair prices for air travel during the Gaza war.
The Competition Authority said on Sunday it intends to levy a fine of 121 million shekels, equivalent to $39 million, after reviewing ticketing and route operations over the period from October 7, 2023 through May 2024.
In its findings, the authority said El Al effectively functioned as a monopoly on 38 of the 53 routes it operated during that time, including services to New York, London, Paris, Bangkok and other destinations in the United States, Europe and Asia. The regulator reported that ticket prices rose on average by 16% and in some instances by as much as 31%.
The authority attributed the airline's market power in part to the suspension of many foreign carriers' flights, saying that with few alternatives available, consumers were heavily reliant on El Al to leave and enter Israel. In its public statement the regulator wrote: "El Al’s price increases were excessive and unfair and justify enforcement action by the Competition Authority, adding that freedom of movement to enter and leave Israel is a fundamental right."
The antitrust body further stated: "Under the circumstances of the war, exercising this right became immeasurably more important, especially during the first months of fighting ... Consumers became almost completely dependent on El Al for an essential service of the highest importance."
Responding to the authority's position, El Al said it "categorically rejects" allegations that it charged excessive fares during the conflict. The airline challenged the authority's calculation and its legal standard, stating: "Even if the Competition Authority’s position is accepted, according to which the average price increase during the war was 16% ... a figure we consider incorrect, there is no precedent for determining that such an increase constitutes excessive pricing."
El Al said it will present a full defense at a scheduled hearing and in any other appropriate legal forum, and expressed confidence that its position will ultimately be accepted.
The Competition Authority noted that although some foreign carriers gradually resumed service, fares did not revert to lower levels. Its evidence, the regulator said, indicated that many consumers continued to buy tickets from El Al out of concern that flights operated by other carriers might be canceled. The authority added that findings of "excessive price gouging" are used rarely and cautiously by competition agencies globally.
The regulator also noted that smaller Israeli carriers Arkia and Israir continued to operate during the war.
Financial results cited in the regulator's review show that El Al posted a nearly five-fold increase in net profit in 2024, reaching a record $545 million, a performance that drew passenger complaints of price gouging. For the first nine months of 2025 the airline reported earnings of $364.1 million. The exchange rate cited in the authority's release was $1 = 3.1190 shekels.
Context and next steps
The Competition Authority has applied the ceiling penalty permitted by law. El Al has indicated it will contest the findings and present its detailed arguments at the forthcoming hearing. The regulator's allegation rests on its analysis of route concentration, fare increases and consumer dependence on El Al during the reviewed months.
Both sides will be expected to introduce evidence and legal arguments at the hearing, where the authority's conclusions and El Al's rebuttal will be weighed under the statutory framework that governs excessive pricing claims.