El Al Under Fire: Airline Pushes to Dodge Payouts Amid Soaring Wartime Profits
With record earnings and a near-monopoly on international routes, Israel’s flagship airline pleads hardship, blaming war while banking big.
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As Israel navigates a volatile 12-day war with Iran, its national airline, El Al, is maneuvering to sidestep legal obligations to compensate thousands of stranded passengers, igniting public ire amid soaring profits. Documents obtained by Globes reveal El Al’s push to amend Israel’s 2012 Aviation Services Law, which requires airlines to provide hotel stays, airport transfers, food, and refunds or alternative flights for cancellations or significant delays. While airlines are exempt from monetary compensation during extraordinary circumstances like war, they remain liable for assistance costs.
El Al, citing the strain of operating “hundreds of loss-making flights” to repatriate tens of thousands of Israelis by air and sea since the conflict’s onset, argues that the current crisis warrants relief from these burdens.
The airline’s request comes as it faces accusations of price gouging, a controversy rooted in the market dominance it gained after Hamas’s October 7, 2023, attack prompted most international carriers, including budget airlines, to suspend flights to Israel. Controlling 20 of 24 international routes, El Al saw its per-passenger profit margins surge 15-fold, with net profits for the first three quarters of 2024 reaching $554 million, compared to $113 million in 2023.
In December, the Knesset passed temporary amendments limiting accommodations to two nights, shortening cancellation notices from 14 to three days, and allowing alternative flights to nearby destinations, but these apply only if Transport Minister Miri Regev declares a “special situation.” El Al insists it deserves further exemptions, stating, “In the current reality, it cannot bear the burden without state backing.”
Compounding the travel chaos, Israel’s Aviation Authority has imposed strict measures at Ben-Gurion Airport, limiting departing flights to 50 passengers and restricting Terminal 3 access to travelers only, with exceptions for escorts of minors or those needing assistance. Passengers must enter via Gate 02, arrive two hours early, and rely on public transport, as the airport operates on a drop-off-only basis with no waiting permitted. While cafés remain open, duty-free shops are closed.