El Al is facing a class action lawsuit accusing it of price gouging during the aftermath of the 7 October attacks, with claims the airline exploited its monopoly to hike ticket prices while most foreign carriers suspended operations.
Filed Tuesday in the Lod District Court, the lawsuit alleges El Al’s pricing practices during the wartime period caused consumer damages estimated at NIS 600 million (£128m) by the end of Q1 2024. The legal team is seeking over NIS 2.5 million in compensation as a first step.
Attorney Ilan Verednikov, along with lawyers Tal Rotman and Adi Zitron of Perl Cohen, argue El Al raised prices immorally and unlawfully during a national crisis. Former competition commissioner Prof. David Gilo submitted an economic analysis supporting the claim, stating that on 20 of 24 key routes, El Al held a dominant share, and the price hikes could not be justified by rising costs – which in fact dropped while profits soared.
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El Al posted a £434 million net profit in 2024 – nearly five times its 2023 figure of £89 million. The lawsuit claims this was largely driven by fare increases, with average ticket prices rising 14.2 percent year-on-year.
The airline has not yet formally responded in court but said Wednesday it would do so “in accordance with regulations”. The company complied and continues to comply with judicial instructions, including relating to flight prices,” it said in a statement.
CEO DINA BEN such Globes in November: “We raised fares much less than everyone thinks. Alternatives like low-cost options don’t currently exist at Ben-Gurion Airport.”
The suit also notes that El Al’s stock value rose sharply, senior executives received pay increases – including a 10.2 percent raise for Ganancia – and staff were awarded £81 million in bonuses.
Verednikov argued that the airline’s conduct undermined public solidarity during a national trauma and called on the court to ensure excess profits are returned to the public. Israel’s Competition Authority and Consumer Protection and Fair-Trade Authority have launched investigations, though they cannot secure consumer restitution.
