El Al Faces $39 Million Fine for Unfair Airfares During Gaza War
Israel's Competition Authority plans to fine El Al Israel Airlines $39 million for excessive airfares during the Gaza war. From October 2023 to May 2024, El Al operated as a monopoly, raising ticket prices up to 31%. El Al disputes the claim and will contest it at a hearing.
The Israeli Competition Authority has announced its intention to impose a hefty fine of 121 million shekels ($39 million) on national carrier El Al Israel Airlines. This move comes as a response to allegations of the airline charging excessive airfares during Israel's Gaza war.
Operating as a monopoly on 38 out of its 53 routes, including major destinations like New York, London, and Paris, El Al saw ticket prices increase by an average of 16% to as much as 31%, according to the authority's findings. With limited competition due to halted flights by foreign carriers, El Al held significant market power.
El Al has vehemently rejected these claims, arguing that a 16% price increase does not qualify as excessive. It plans to challenge the decision in an upcoming hearing, asserting confidence in its case. Despite some foreign airlines resuming operations, consumers continued to rely heavily on El Al, fearing other flights might be canceled.
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