El Al Israel Airlines is facing accusations of unfair airfare hikes and indulging in price gouging, taking advantage of the current lack of airlines to and from Israel, particularly on the Tel Aviv-New York route.
Several international and US companies have announced in recent months they are canceling their flights to Israel due to the ongoing war.
Since the October 7, 2023, attacks, airlines flying between Israel and the US continued to operate, albeit with disruptions. However, recent military escalations in the summer have prompted several companies to freeze their operations in Israel altogether.
Currently, El Al is the only airline that operates direct flights from Israel to New York. American Airlines removed all its flights to and from Israel from its schedule until the end of September 2025. United Airlines has canceled its flights to Israel until further notice, and Delta has no plans for flights to Israel until March of next year.
The cost of an economy ticket to the US on an El Al flight in November started at close to $1,000 and the flights were packed. The price has risen for December and on the company’s website, economy tickets from Tel Aviv to New York cost at least $300 more, with no explanation offered.
El Al reported record earnings in the third quarter of 2024, benefiting from a near-monopoly on flights to and from Israel amid the ongoing war and regional security tensions. The airline posted $1 billion in revenue from July to September, a 43 percent increase from $696 million during the same period last year.
The airline has also broken its own record, posting a net profit for the third quarter of $187 million, 3.6 times the $52 million profit in the corresponding quarter of 2023.
“The growth stems from extraordinarily high occupancy rates and from high demand for the company’s flights because of the decline in flights by foreign airlines to Israel,” El Al acknowledged after the numbers were made public.
Asked by Globes about allegations that it was price gouging, El Al CEO Dina Ben Tal Ganancia said “the criticism is understandable,” but claimed that El AL raised fares “much less than everyone thinks.”
El Al says there has been a 16 percent rise in average revenue per passenger.
Following public criticism of its fares, El Al has been implementing a policy of limiting maximum fares on flights in recent months, a policy which has infuriated frequent flyers and business class passengers.
Despite all the above, recent diplomatic developments between Israel and Lebanon and a possible ceasefire with Hezbollah have sent the airline’s stock into a nose dive. El Al shares have dropped by 12 percent in the past two days, as an agreement with Lebanon may lead to airlines returning to Israel and cause local companies to lower their prices.
