The Competition Authority announced today (February 8, 2026) to El Al Airlines that it intends to determine that the company held a monopoly on flights to and from Israel during the war period and that it charged passengers excessive and unfair prices. Accordingly, the authority is considering imposing the maximum financial penalty stipulated by law – 121 million shekels, subject to a hearing.
Near Total Monopoly After October 7
According to the Competition Authority’s announcement, from October 7, 2023, until the end of May 2024, El Al effectively became the main provider of incoming and outgoing flights from Israel. Many foreign airlines ceased operations, the supply of flights sharply decreased, and the demand—mainly from Israelis seeking to return home or leave the country—remained high.
Data collected shows that the percentage of passengers flying with El Al soared within days from about 20% to more than 70% of all passengers, and in the initial months of the conflict, the airline transported over 50% of passengers to and from Israel. Additionally, it was determined that El Al held a monopoly on at least 38 out of the 53 routes it operated during that period.
Significant Price Increases Even with Empty Seats
A comprehensive economic review conducted by the Competition Authority, which included an analysis of millions of flight tickets and a comparison to the period preceding the war, revealed that El Al’s flight prices increased by rates ranging from 6% to 31%, with the average increase standing at about 16%.
It was also found that even on flights that departed with less than full occupancy, less than 85% in economy class, there was a price increase of about 25%. Approximately 16% of El Al passengers during the examined period flew on such flights, meaning that even when there were available seats, prices did not decrease.
Rare and Precedent-Setting Enforcement Grounds
The Competition Authority emphasizes that the ground of “excessive and unfair pricing” is a ground that is used very rarely and has been enforced in Israel only once before. However, the combination of wartime circumstances, the essential nature of flights as a basic product, the lack of real alternatives, and the power disparities between the company and consumers led to the conclusion that there is justification to initiate enforcement proceedings.
The authority’s statement noted that the price increase “was found to have no legitimate justification,” and that when consumers have no real alternative, charging significantly higher prices than those in a competitive market may be considered unfair conduct.
El Al’s Response: “We Completely Reject the Claims”
El Al’s spokesperson responded:
“El Al completely rejects the claim that it charged excessive prices during the war. Even if the Competition Authority’s position that the price increase during the war period was an average of 16% for economy and premium classes (a figure we believe is incorrect) is accepted, there is no precedent for determining that such a price increase reflects excessive pricing. El Al will present its full position at the hearing and in any appropriate legal forum and is confident that its position will be accepted.”
What’s Next?
The ruling and imposition of the financial penalty are not yet final and are subject to a hearing to be held for El Al before the Competition Commissioner. After the hearing, a final decision will be made regarding the measures to be imposed on the company.
The Competition Authority’s move could become one of the most dramatic steps taken in Israel’s aviation sector and set a new standard for how the state deals with the pricing of essential services during emergencies.
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