Israeli airline El Al to be fined millions of shekels for demanding excessive prices during the war

The Israeli state Competition Authority is likely to fine Israel’s national airline, El Al, tens of millions of shekels for price-gouging during the past two years of war, Channel 12 News reported on Tuesday.

El Al has drawn harsh criticism from consumers and politicians since Oct. 7, as the airline sharply raised prices while many international airlines stopped their service to Israel, leaving El Al with a monopoly on numerous connections.

The Competition Authority recently wrapped up an investigation of the airline's conduct over the past two and a half years, and Channel 12 reported that it presented its findings and informed El Al that it is considering issuing the fine.

The authority is reportedly expected to issue the fine over the “excessive and unfair prices” during the time of war. The penalty could even reach the maximum of around NIS 120 million ($37.7 million) that is allowed by law.

It is reportedly also considering personal financial sanctions against former El Al CEO Dina Ben Tal Ganancia, who received significant bonuses during the relevant period.

In 2024, the airline saw a 37% increase in its revenue and an almost fivefold increase in net profit compared to the previous year. Despite continuous public criticism of the airline’s price policy, its share price also rose by more than 460%.

Amid the public criticism, El Al announced a new policy several months ago, fixing prices for flights to key destinations and introducing maximum prices for certain other connections.

In response to the report by Channel 12, El Al stated it hadn’t yet received a notice issuing the fine, claiming that it “strictly adheres at all times to all legal requirements, including competition law.”

“Throughout the war period, El Al acted far beyond what is required by law, out of a sense of solidarity and commitment to the Israeli traveling public,” the company said.

Meanwhile, Israel’s Airports Authority (IAA) announced on Tuesday that 18.4 million passengers travelled through Ben-Gurion International Airport this year, an increase of 33% compared to the previous year.

The flight sector has seen a slow resurgence in recent months, which was strengthened by the ceasefire in Gaza, and also enabled flight prices to decrease.

At the moment, around 60 foreign carriers offer connections to Tel Aviv, down from 80 before the war.

Hungarian budget airline Wizz Air, which was the most popular foreign carrier in Israel this year, recently announced that it plans to open a regional hub in Israel in the spring.

The 134,000 flights out of Israel this year were an increase of 32% compared to 2024, the year-end figures showed. El Al carried 38% of all traffic in Israel, while 20% was handled by the other Israeli airlines, Arkia and Israir.

The top destinations were Greece with 2.2 million passengers, followed by the U.S. with 1.6 million, the United Arab Emirates with 1.5 million, and Italy and Cyprus with 1.2 million passengers each.

“2025 proves that the Israeli aviation [industry] knows how to cope with challenges and grow even in complex periods,” said Israeli Transportation Minister Miri Regev.

Sharon Kedmi, chief executive officer of the IAA, added that “The 2025 statistics illustrate a clear return of Israeli aviation to the center of the international map.”

The IAA estimates that 22 million passengers while travel via Ben Gurion Airport in 2026.