Authorities in Israel are planning to levy a 121 million shekel ($39 million) fine against El Al, the nation’s flag carrier, amid accusations of price gouging since the start of the ongoing Gaza War. Antitrust regulators in the country have alleged that, during the conflict, the national airline of Israel has leveraged its position as the monopoly holder on many routes where other carriers have withdrawn service to overprice many of its fares.

In some instances, the cost of a ticket on EL AL is said to have risen by as much as 31%, although the airline refutes these claims, and plans to present its side of the story in a legal setting in order to clear its name. Let’s take a closer look at the nature of the fine, its basis, and El Al’s monopoly on various routes.

The Highest Possible Fine

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According to reporting by Reuters, the $39 million fine that Israel’s Competition Authority plans to levy against El Al is the highest possible legally permitted total, underlining the severity of its allegations against the nation’s flag carrier. Since the onset of the Gaza War in October 2023, more and more foreign airlines have withdrawn their flights to and from Israel, which has left El Al as the only operator on a wide variety of high-value routes.

Specifically, Reuters notes that El Al is the sole carrier on 38 of its 53 routes (71.7%), with these corridors including lucrative destinations in markets such as Europe and North America. Indeed, London and New York, two of the world’s most valuable and well-connected aviation cities, are among the places where El Al holds a monopoly. Despite this, it has refuted Israeli authorities’ allegations of price gouging, with the flag carrier explaining that:

“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.”

How Much Have Fares Risen?

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According to the Jerusalem Post, Israel’s antitrust body found that, while, on some routes, fares had risen by just 6% during the course of the conflict, the average hike was almost three times as high, at 16%. The peak increase clocked in at 31%, with The Times Of Israel adding that even flights that were not fully booked were subjected to price gouging. Indeed, this is said to have been as high as 25% in economy class on some flights.

This practice has seen El Al come under heavy scrutiny from Israeli authorities, who have said that its “price increases were excessive and unfair and justify enforcement action by the Competition Authority.” The antitrust body added that El Al’s price gouging denied Israeli citizens the fundamental right of freedom of movement, despite the fact that “under the circumstances of the war, exercising this right became immeasurably more important.”

However, El Al has refuted these allegations, saying that it “categorically rejects” the Israeli Competition Authority’s accusations of price gouging. Indeed, the airline said that it considers the reported fare hike of 16% to be incorrect, adding that, even if this was the case, “there is no precedent for determining that such an increase constitutes excessive pricing.” With this in mind, El Al plans to present its case at a further hearing into the matter.

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The Israeli flag carrier also serves London’s Luton Airport.

Where Is El Al Currently Flying?

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As detailed below, current scheduling data made available by Cirium, an aviation analytics company, shows that El Al is set to operate just under 2,700 flights this month, offering more than 532,000 seats in the process. This capacity is split between Boeing 777 and 787 jets on the widebody side, and 737 narrowbodies.

Flying out of Tel Aviv (TLV), the carrier’s top destination this month is comfortably Paris Charles De Gaulle Airport (CDG), with 108 flights scheduled in each direction at a maximum frequency of five services a day in each diretcion. Elsewhere in Europe, London Heathrow (60), Rome Fiumicino, and Milan Malpensa (52 apiece) are also big hitters, while further afield, New York JFK will see 64 rotations at a peak of four a day.