EL AL faces record fine from Israeli competition regulator for price gouging during Gaza war
February 9, 2026
EL AL is facing a 121 million Israeli New Shekel (£29m, $39m) fine after Israel’s competition authority claimed the carrier had charged excessive fares in the aftermath of the Gaza conflict.
If imposed on the Tel Aviv-based operator, it would be the maximum fine allowed by law, however EL AL still has an opportunity to avoid the penalty in an upcoming hearing.
Israeli regulator alleges El Al price gouging during Gaza war
The competition authority alleges that EL AL inflated its prices during the war, at a time when competition on routes between Israel and the rest of the world was severely limited by the conflict.
Michal Cohen, head of Israel’s Competition Authority, was quoted in the Times of Israel as saying: “The security situation led to an extreme situation for the travelling public.
“The entire period was characterised by instability and a need for certainty in the ability to fly from place to place, and many consumers had no choice but to pay the prices charged by EL AL for fear of flight cancellations [by foreign airlines], while others had no choice but to give up flying.”
EL AL market share surges as war limits airline competition
According to the Jerusalem Post, EL AL’s share of passengers travelling to and from Israel soared from approximately 20% before the October 7 2023, attack by Hamas, to more than 70% within days of the start of the war.
Looking at the period between October 7 and the end of May 2024, EL AL reportedly had a monopoly on 38 of the 53 worldwide routes it operated.
At the same time, the regulator alleges that prices for EL AL tickets climbed by an average of 16%, while select routes saw even higher fare increases.
Last year, the airline reported a nearly five-fold surge in net profit, reaching a record $545 million in 2024, up from $117 million in 2023.
The airline’s annual revenue for 2024 also soared to approximately $3.4 billion, a 37% increase from the previous year, with load factors above 90% and markedly up on 2023.
EL AL rejects price gouging claims over wartime fares
In a statement responding to the allegations, an EL AL spokesperson was quoted as saying: “Even if the Israel Competition Authority’s position is accepted, according to which ticket prices rose by 16% on average for economy and premium classes (which is an incorrect figure in our opinion) during the war, there is no precedent for determining that such a price increase reflects excessive pricing.
“EL AL will present its full position at a hearing and in any appropriate legal forum and is convinced that its position will be accepted.”
Wizz Air’s Israel base plan draws opposition from EL AL
The move comes as EL AL opposes new entrants into the Israeli airline market.
The flag carrier is pushing back against a plan by Wizz Air to establish a base in Israel, warning that the move could damage the country’s aviation sector.
The Hungarian low-cost carrier has been eyeing a base at Tel Aviv’s Ben Gurion Airport since the spring.
According to a letter sent to the Israeli authorities last summer, reported by Israeli outlet N12, EL AL CEO Dina Ben Tal Ganancia and the airline’s board chair set out their concerns over the potential impact of Wizz Air’s proposal.
“The plan entails a risk of substantial harm to Israeli airlines in particular and to the State of Israel in general,” their letter stated.
“It could lead to negative consequences for national resilience and the safety of the Israeli public on flights from and to Israel.”
EL AL argued that Israeli carriers “serve as an air bridge between Israel and the nations of the world and play a vital role in maintaining the State of Israel’s resilience.”
The letter claimed the move “adds to other measures that hurt Israeli aviation and creates competitive inequality,” pointing to the “stringent security requirements and high costs” borne by Israeli airlines, which it said foreign operators are not required to meet.
Featured image: Adam Moreira / Wikimedia Commons
