
El Al Faces Record $39 Million Fine For Wartime Price Gouging
Israel’s Competition Authority has notified El Al of its intention to levy the maximum legal fine—NIS 121 million (about $39 million)—alleging the carrier charged “excessive and unfair” fares during the months when most foreign airlines suspended service to Israel after October 7, 2023. The proposed penalty would go to the state treasury but is not yet final; the airline will have an opportunity to contest the claim in a formal hearing.
Regulators said El Al effectively monopolized air travel for roughly seven months and used its dominant position to keep ticket prices unusually high. El Al rejected the allegations, arguing that an average 16% increase in economy and premium fares does not constitute excessive pricing and noting that unprecedented demand and reduced capacity distorted normal market conditions.
The carrier has recently reported record revenue and profits, driven in part by near-total control of routes to North America during the period in question. The case now turns on how Israeli law defines and measures “excessive” pricing in emergency conditions and whether El Al’s market dominance amounted to abuse.
(JPost/VFI News)
“Honest scales and balances belong to the LORD; all the weights in the bag are of his making.” – Proverbs 16:11