The Israeli Competition Authority announced its intention to impose a fine of 121 million shekels (approximately $39 million) on El Al Israel Airlines for allegedly charging exorbitant and unfair airfare prices during the ongoing war in Gaza. This penalty is the maximum allowed by law and comes as a response to the airline's practices from October 7, 2023, to May 2024, during which the authority found that El Al operated in a monopoly environment for 38 out of 53 flight routes. This situation arose as many foreign airlines suspended their flights to and from Israel, granting El Al significant market power.

The investigation revealed that during this period, ticket prices increased by an average of 16%, with some routes experiencing hikes of up to 31%. Key destinations affected included major cities such as New York, London, Paris, and Bangkok, as travelers had limited alternatives for securing flights. The Competition Authority emphasized that such price increases were inappropriate given the economic and humanitarian context of the war, which has restrictions on travel and heightened public scrutiny of corporate practices.

In response to the allegations, El Al categorically denied any wrongdoing, asserting that their pricing strategies were justified and competitive. This situation underscores the tension between market forces and regulatory oversight during crises, raising questions about consumer protection and the ethical responsibilities of airlines in times of conflict. The authority's decision to pursue this fine reflects a broader commitment to ensuring fair market practices, particularly in industries that significantly impact citizens' lives and choices during turbulent times.