El Al Lawsuit: NIS 121M Fine and NIS 600M Class Action

El Al is facing two parallel price gouging lawsuit tracks over the fares it charged after the October 7, 2023, Hamas attacks: a proposed NIS 121 million fine (about $39 million) from the Israel Competition Authority, and a class action in the Lod District Court estimating passenger damages at roughly NIS 600 million (about $169 million). Both accuse Israel’s national carrier of exploiting a near-monopoly on flights in and out of Ben Gurion Airport to raise ticket prices while foreign airlines stayed away. El Al denies wrongdoing in both matters and is contesting them.¹²

Why the Case Exists: A Near-Monopoly on Israeli Skies

Within days of the October 7 attacks, most major international carriers pulled out of Ben Gurion Airport. American Airlines, Delta, United, British Airways, Lufthansa and its subsidiaries, Air France, Ryanair, easyJet, Wizz Air, and Cathay Pacific were among the airlines that halted service, some indefinitely.³ Emirates, FlyDubai, Ethiopian Airlines, and Air Serbia kept flying, but the bulk of capacity vanished overnight.⁴

El Al added flights to destinations including New York, Bangkok, Athens, and Frankfurt.⁴ Its share of passenger traffic to and from Israel jumped from around 20% before the war to more than 70% shortly after it began.¹ On North American routes, its share reached 97.5%, with planes running at 96% occupancy.⁵

The isolation lasted. As of late November 2024, American Airlines had canceled flights to Israel through September 2025, Delta had removed the country from its schedule indefinitely, and British Airways, Ryanair, and easyJet were not planning a return before April 2025.⁶ A second wave of cancellations followed in May 2025 after a Houthi ballistic missile struck near Ben Gurion Airport.⁷

The Competition Authority’s NIS 121 Million Proposed Fine

The Israel Competition Authority analyzed millions of tickets El Al sold between October 7, 2023, and the end of May 2024, comparing prices to the year before the war. It found that El Al held monopoly status on at least 38 of the 53 routes it operated in that window, covering major destinations including New York, London, Paris, Bangkok, Tokyo, and Los Angeles.¹

The regulator concluded that ticket prices rose by an average of 16%, with some routes climbing 31%. On flights that were not fully booked, economy fares were still raised by roughly 25%. The authority used economic analyses meant to strip out seasonal swings and normal demand shifts, and concluded the increases reflected an abuse of “exceptional market power” rather than ordinary market dynamics.⁸ Even when some foreign carriers trickled back, prices did not fall, partly because passengers feared those airlines would cancel again and stuck with El Al.⁹

In February 2026, the authority notified El Al of its intention to impose a financial sanction of up to NIS 121 million ($39 million), the statutory maximum.¹⁰ The fine is not final. El Al is entitled to a formal hearing to present its defense before any penalty takes effect.¹ El Al shares dropped 1.2% on the Tel Aviv Stock Exchange the morning after the announcement.¹¹

El Al’s Defense

El Al has rejected the allegations. It disputes the 16% average increase figure, calling it “incorrect,” and argues that even accepting the regulator’s numbers, there is no Israeli legal precedent for treating an increase of that size as “excessive pricing.”¹² In a filing to the Tel Aviv Stock Exchange, the airline denied any improper conduct and said it will contest the fine “at the hearing and in any appropriate legal forum.”¹¹ CEO Dina Ben Tal Ganancia has said the airline complied with all judicial instructions on flight prices and that the fare changes were driven by low-cost competitors leaving Ben Gurion Airport.¹³

The NIS 600 Million Class Action

On June 10, 2025, attorney Ilan Verednikov filed a class action petition against El Al in the Lod District Court, represented by Tal Rotman and Adi Zitron of the Perl Cohen law firm. The suit estimates total damages to Israeli consumers at roughly NIS 600 million (about $169 million) through the end of the first quarter of 2024, and seeks over NIS 2.5 million as an initial claim.²

The petition accuses El Al of exploiting its monopoly to raise prices in a “prohibited, immoral and illegal manner” during a national emergency, amounting to wartime profiteering.¹⁴ It relies on an economic analysis by Professor David Gilo, a former commissioner of the Israel Competition Authority. Gilo examined 24 flight routes and concluded that El Al held a dominant market share on 20 of them. His report argues the price increases were profit-driven rather than cost-driven, noting that El Al’s operational costs actually declined during the relevant period.¹⁵

At the time of filing, El Al said it had not yet formally received the petition and would respond to the court after its legal team reviewed the documents. The airline maintained that it “has acted and is acting in compliance with the provisions of the law, including flight prices.”¹⁴ The case remains pending, with no court rulings or hearing dates reported.¹⁶

The Competition Authority’s findings could carry significant weight in the civil case. Under Israeli law, an official determination by the competition commissioner can serve as prima facie evidence in a class action.¹

Record Profits Behind the Allegations

El Al’s 2024 financial results are central to both cases. Annual net profit reached approximately $545 million, compared to $116 million in 2023, which had itself been a record year. Revenue climbed 37% to $3.4 billion, and net financial debt fell from $1.6 billion at the end of 2023 to just $75 million by the close of 2024.¹⁷ Revenue per available seat rose 24%, and the airline achieved a 94% load factor across its network.¹⁸ El Al paid employees $103 million in bonuses, and CEO Ben Tal Ganancia received a 10.2% raise to NIS 6.5 million ($1.8 million).¹⁴

Addressing public anger, Ben Tal Ganancia characterized the average ticket price increase as “just 14%” per passenger in 2024 and described the airline’s approach as a “strict pricing policy” that included maximum prices and uniform fares for certain destinations.¹⁸ The Times of Israel reported, however, that airfares to and from Israel had at times more than doubled since October 7, 2023.¹⁷

What Happens Next for Passengers

Neither the fine nor the class action is resolved. The NIS 121 million penalty will go through a hearing at which El Al can present its defense before the Competition Authority decides whether to impose it in full, reduce it, or drop it. If a fine is imposed, El Al has already signaled it will appeal.¹¹ The class action in the Lod District Court has not yet been certified, and no hearing dates have been reported.¹⁶

If you bought an El Al ticket during the war period, the class action, if certified, would define who falls within the proposed class and what any eventual recovery might look like. No claim form or deadline has been announced, because there is nothing yet to claim against. The proposed damages figure is an estimate offered by the plaintiffs to frame the case, not a court finding.²

1
Times of Israel. El Al Set to Be Fined for Excessive and Unfair Price Gouging During War
2
Israel Hayom. Israelis Sue National Carrier Over Exploitation of War for Profit
3
Al Jazeera. Major International Airlines Suspend Flights to Israel Amid War on Gaza
4
Business Travel News. Major Airlines Suspend Service to Israel
5
Jerusalem Post. El Al Price Gouging During War
6
Calcalist. Airline Status Updates
7
Times of Israel. Israelis Again Isolated as Airlines Take Hiatus
8
Jerusalem Post. El Al Competition Authority Investigation
9
Zawya. Israeli Antitrust Body to Fine El Al for Price Gouging During War
10
Haaretz. Regulator: El Al Overcharged During Gaza War, Faces 121 Million Shekel Fine
11
Bloomberg. Israel’s El Al Fined $39 Million Over Wartime Airfare Hikes
12
Global Banking and Finance. Israeli Antitrust Body Fine El Al $39 Million Price Gouging
13
Jerusalem Post. El Al Class Action Over Price Gouging
14
Times of Israel. Exploiting National Tragedy: El Al Faces Class Action Over War Price Gouging Claims
15
The Yeshiva World. El Al Accused of Wartime Price Gouging in Class Action Lawsuit
16
Jewish News. El Al Faces Class Action Lawsuit Over Wartime Price Hikes
17
Times of Israel. El Al Posts Record High $545 Million Profit in 2024 Following Wartime Near-Monopoly
18
Aerospace Global News. El Al Profits Soar as Airline Thrives Amid Regional Challenges