El Al Airlines, Israel's national carrier, is facing a record-breaking fine of $33 million for alleged price gouging during the early months of the Gaza war. The Competition Authority claims El Al charged 'excessive and unfair' fares, dominating the market with a near-monopoly status. From October 7, 2023, to May 2024, El Al's market share skyrocketed to over 70%, with average ticket prices soaring by 16%. This surge in prices, according to the authority, was unjustified due to the absence of competition and the heightened demand during wartime. Despite El Al's robust financial performance, recording a record revenue of $3.4 billion and a net profit of $545 million in 2024, the airline refutes the allegations, citing a lack of precedent for the authority's claims. The investigation, prompted by public and political scrutiny, has led to separate civil lawsuits seeking substantial damages. The fine, if imposed, will be directed towards the state treasury.
