El Al is facing a bombshell class action lawsuit accusing the national carrier of exploiting a time of national tragedy for massive financial gain, The Jerusalem Post reports.

Filed Wednesday in the Central District Court in Lod, the lawsuit alleges that El Al engaged in widespread price gouging in the immediate aftermath of the October 7, 2023 Hamas attacks, when most foreign airlines suspended operations and El Al became the dominant — and often only — option for air travel in and out of Israel.

The suit, led by attorney Ilan Verednikov and backed by legal heavyweights Dr. Tal Rotman and Adi Zitron of the Perl Cohen law firm, accuses El Al of leveraging its monopoly status to hike ticket prices well beyond what was justified by operational costs. The legal filing describes El Al’s conduct as “immoral, illegal, and deeply cynical,” taking advantage of a national emergency to line its own pockets.

According to the lawsuit, by the end of Q1 2024, El Al’s pricing practices had caused an estimated 600 million shekels in damages to Israeli consumers — a figure that continued to grow as the war progressed.

The lawsuit is bolstered by expert economic analysis from Professor David Gilo, a former Commissioner for Competition, who examined 24 key flight routes and found El Al held a dominant share in 20 of them. Gilo’s report asserts that the airline’s price increases were not due to rising costs — which actually declined during the period — but were purely profit-driven.

In a wartime economy where thousands of Israelis were desperate to travel or reunite with loved ones, ticket prices on major routes surged by over 14%, the suit claims. El Al, in turn, posted record-breaking financials: a staggering $554 million in net profit in 2024, compared to $113 million the previous year.

While Israeli families bore the financial burden, El Al’s top brass thrived. CEO Dina Ben Tal Ganancia received a 10.2% salary increase, and other executives also saw substantial raises. Employees were awarded a historic $103 million in bonuses, all while consumers paid inflated fares.

Verednikov argues the airline’s actions not only inflicted financial harm, but also dealt a serious blow to the social fabric of the nation. “At a time when solidarity was most needed, El Al chose profit over people,” he stated. “We’re asking the court to ensure that no company is allowed to exploit a national emergency for personal gain — and that those who were harmed are compensated.”

The lawsuit has ignited widespread public anger and drawn the attention of both the Competition Authority and the Consumer Protection and Fair Trade Authority, which have launched investigations into the airline’s practices. However, these agencies are limited in their ability to secure compensation — which is why, Verednikov says, court intervention is crucial.

If successful, the case could see hundreds of millions of shekels in excess wartime profits returned to Israeli consumers.

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