The Israel Competition Authority has completed its comprehensive investigation into whether El Al Airlines took advantage of the ongoing conflict environment by excessively and unfairly increasing ticket prices.
The investigation was launched following allegations that, after many foreign airlines suspended flights to Israel, El Al effectively became a temporary monopoly and may have used this position to the detriment of consumers.
Officials stated that if violations are confirmed, El Al could face fines amounting to tens of millions of shekels, and individual sanctions against senior executives are also being considered.
“Cynical Exploitation” Review
The investigation, which was reported to last approximately two years, is expected to clarify whether El Al engaged in a practice defined by regulators as “cynical exploitation.” This term refers to the abuse of market power during extraordinary periods.
If violations are finalised, the Competition Authority may impose administrative fines calculated based on the company’s cash flow, potentially reaching the legal upper limit.
Public Reaction, Class Action Lawsuit Filed
While the issue has generated widespread public reaction, the sharp increases in ticket prices during the war period — by dozens of percentage points — have caused intense backlash. In a class action lawsuit filed against El Al in June, the company was accused of “exploiting an unprecedented national tragedy to generate extraordinary profits at the expense of its customers.”
The lawsuit petition described the practices in question as “disgusting, unacceptable, illegal, unjust and immoral,” arguing that monopolistic profits were made at a time when thousands of Israeli citizens and soldiers were affected by the conflict.
Record Profits Draw Attention
El Al announced that it generated approximately 554 million dollars in net profit in 2024, noting that this figure rises to 771 million dollars when subsidies and tax arrangements are taken into account. The company’s net profit in 2023 stood at 113 million dollars.
It is stated that the Competition Authority’s final decision could have serious legal and financial consequences for both El Al’s corporate structure and the company’s executives.
