Israel’s flag carrier, EL AL, will be fined nearly $39 million for price-gouging during Israel’s two-year war against Hamas in the Gaza Strip, Israel’s Competition Authority announced on Sunday.

The fine, which is the top penalty afforded by law, is subject to a hearing.

EL AL raked in record-breaking profits over the past two years when it flew as a virtual monopoly as foreign carriers halted flights to and from Israel, and as its airfares hit record highs amid huge demand and low supply.

“El Al served as a monopoly on flights from October 7, 2023, until May 2024, and set inflated and unreasonable prices on its fares during this period,” according to an ICA statement.

It found that the average price increase during the war was 16% for economy and premium class.

The months-long ICA investigation followed harsh criticism in Israel over the national carrier’s pricing policies during the first year of the war.

Any fine collected would go into state coffers.

The national carrier is also facing a separate lawsuit, in the hundreds of millions of dollars, alleging price-gouging.

The airline has denied the allegations and said on Sunday it would dispute the fine.

“El Al completely rejects the claim that it charged excessive prices during the war,” a spokeswoman said. “Even if the Competition Authority’s position is accepted… there is no precedent for determining that such a price increase reflects excessive pricing.

”El Al will present its full position at the hearing and in any appropriate legal forum and is convinced that its position will be accepted.”

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