War-driven isolation forced El Al dominance as Israel balances national resilience with consumer protection.
Israel’s Israel Competition Authority announced Sunday its intention to declare El Al a monopoly on inbound and outbound flights during the period spanning October 7, 2023 through May 2024. The authority is also seeking to impose the maximum statutory fine of NIS 121 million, subject to a formal hearing.
According to the regulator, following the October 7 Hamas massacre, most foreign airlines abruptly suspended flights to Israel, leaving El Al as the primary carrier maintaining air connectivity during wartime. As a result, El Al’s market share reportedly surged from approximately 20 percent prior to the attack to over 70 percent within days, remaining above 50 percent throughout the early months of the conflict.
The authority claims that average ticket prices rose by roughly 16 percent during this period, with increases ranging between 6 and 31 percent on major routes. Regulators argue that these increases were excessive and unfair, citing reduced competition alongside heightened public demand as Israelis sought to return home or leave the country under emergency conditions.
El Al firmly rejected the accusations, stating that the pricing analysis is fundamentally flawed and without precedent in comparable wartime scenarios. The airline emphasized that it operated under extraordinary security, staffing, and operational constraints while ensuring Israel’s aerial lifeline remained open. El Al said it will present its full position during the hearing process.
The case underscores a broader wartime dilemma: how Israel sustains national resilience and strategic continuity while ensuring market fairness under conditions imposed by terror and international withdrawal.
