Israeli flag-carrier El Al is facing potential legal action over allegations that it took advantage of depleted competition, arising from the Gaza conflict, to hike prices.
The airline says it is aware that an approval request has been filed with a central district court in Lod for a class action lawsuit.
This lawsuit, it adds, alleges “legally-prohibited monopolistic price-gouging” of an essential service during a period of conflict and emergency which began on 7 October 2023.
The claim covers anyone who purchased a ticket from El Al – or its Sun D’Or subsidiary – at an “exorbitant” fare.
According to the applicant submitting the lawsuit, the alleged financial damage amounts to 1.7 billion shekels ($483 million) as of 31 May this year, with non-pecuniary damage of 406 million shekels.
El Al has turned in an unusually-strong financial performance since the outbreak of the Gaza conflict, which the carrier attributes to high demand for its flights amid the withdrawal of competing carriers from Tel Aviv.
The carrier says it will examine the allegations in the application, once served, and submit a response to the court.
“At this stage [we are] unable to assess the chances of the application,” it adds.
