Israel’s Competition Authority said on Sunday it plans to impose a record fine of 121 million shekels, about $39 million, on El Al Israel Airlines over what it described as unjustified fare increases during the war in Gaza.
The regulator said its investigation found that El Al effectively dominated 38 of the 53 routes it operated between October 7, 2023, and May 2024, including key destinations such as New York, London, Paris, Bangkok and several cities across the United States, Europe and Asia.
According to the authority, average ticket prices rose by around 16 percent, with increases reaching as high as 31 percent during certain periods. The surge came as many foreign airlines suspended flights to and from Israel, leaving El Al with a near-monopoly on multiple routes.
The Competition Authority said this market dominance allowed the carrier to raise fares in a way that harmed consumers during a period of heightened national crisis.
El Al rejected the findings, saying it strongly denies accusations that it imposed excessive prices during the war.
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