Israel’s national airline, EL AL, is expected to be hit with tens of millions of shekels in fines over allegations that it price-gouged passengers during Israel’s two-year war against Hamas, according to a report Tuesday night by Channel 12 News.
The impending penalty follows a months-long investigation by Israel’s Competition Authority, which concluded that EL AL sharply raised fares while operating as a virtual monopoly after most foreign airlines suspended flights to and from Israel during the fighting. With demand soaring and alternatives disappearing, ticket prices climbed to record highs, fueling public outrage and political pressure.
Channel 12 reported that regulators are also weighing personal financial sanctions against former CEO Dina Ben Tal Ganancia, an unusually severe step that would mark one of the most aggressive enforcement actions ever taken against a senior executive in Israel’s aviation sector.
During the war, EL AL posted record-breaking profits, benefiting from its dominant position at a time when tens of thousands of Israelis had little choice but to rely on the flag carrier for travel in and out of the country. Critics have accused the airline of exploiting a national emergency for commercial gain.
Beyond the regulatory probe, EL AL is also facing a separate civil lawsuit seeking hundreds of millions of dollars in damages, alleging systematic price-gouging and abuse of market power during the conflict.
The airline has denied all allegations, maintaining that its pricing reflected operational costs, security challenges, and extraordinary wartime conditions. EL AL has not publicly commented on the reported size of the expected fine or the potential action against its former chief executive.
(YWN World Headquarters – NYC)
Join the official YWN WhatsApp status
17 Responses
El-Al took unfair advantage; they ought to be fined and required to pay back double to everyone they overcharged.
How exactly does fining them help? They should be forced to partially refund passengers for the overcharge, not lining the pockets of the “competition authority”
No need to worry for EL AL; those fines will be passed on to the consumers in the form of higher ticket prices.
This needed an investigation? Every clown on Earth saw it on their computer. It was obvious for day one and no one in the government could care less. At least they finally woke up
Supply & demand ?
Why shouldn’t Elal raised the prices?
In business, there is a supply & demand aspect that is put into the equation when determining price.
Why shouldn’t Elal raised the prices?
In business, there is a supply & demand aspect that is put into the equation when determining price.
Why shouldn’t Elal raised the prices?
In business, there is a supply & demand aspect that is put into the equation when determining price.
@Paul – Exactly! But it goes a step further. Being the only airline flying, planes, staff, hours of shifts, perhaps numbers of shifts, food needs, housekeeping needs, maintenance, all increase and with that the costs. Overtime. Longer shifts. …
Some of us didn’t overpay – we just missed out on important events because the El Al airfare was beyond our not-very-deep pockets. No one will reimburse us for missing out on those special occasions.
If El Al sees that they will have to pay a hefty penalty, it might incentivize them to keep their prices reasonable even in times of crisis with no competition.
Yes, they did charge a lot more than their usual prices: they’re more jow too! A ticket now for Pesach is nearly $3000: that’s very high. Very, very high! But to their defense. During Covid and during the war, when no one else was flying, they had to assume a much higher cost from the airport personnel because there was no one to share it with. And, during the war, their insurance rates were skyrocket high because of the higher risk. Their costs were so much higher but they flew because they were needed. They also flew free flights for reservists volunteering to fight for the cause. Who paid for those costs? We all did. That’s partly why their prices were so much higher. Not סתם רשעות: although it was painful nonetheless to have to pay such elevated prices during both times.
Instead of passing any costs to the passengers A.K.A. the consumers, how about passing the costs unto the shareholders who received large dividends, to have to return the illegally large dividends
To 147:
Or better yet;
Bill these extra costs to Chamas. They’re getting plenty of financial help from their muslim cronies.
Everyone sticking up for their Sky High usurping prices should explain to us then why with all these added expenses you claim they had they still recorded the highest profits ever beyond what anyone could dream. And not one quarter many quarters. That’s all from us and being ripped off and taking advantage, not from Fair practices
I have a suggestion for ElAl. During the next crisis they should stop flying like everybody else.
Dont get it
People chose whether to click “purchase’
If this is meant in any way as consumer protection, then every person that flew with El Al during these periods, belongs being compensated for any overcharges. Instead; they take a few years, allowing El Al to continue with their price gouging and only now show up with penalties. Bunch of baloney.