El Al’s profits skyrocket to $545 million amid price gouging controversy

Controlling 47.5% of passenger traffic at Ben Gurion Airport, nearly double its pre-war share, the carrier raked in $130 million in the fourth quarter alone, boosting its cash reserves to $1.4 billion. This banner year, detailed in a March 12, 2025, report, comes as El Al faces accusations of exploiting its market dominance with steep fare increases.

The airline dismisses claims of wartime price gouging, asserting that average ticket prices rose by a modest 14% per passenger. It highlights fixed fares on select European routes—$199 to Larnaca, $299 to Athens, and $349 to Dubai, Vienna, and Frankfurt—as proof of restraint. Yet, these measures ring hollow for North American travelers, where competition is scarce, and fares have spiked dramatically. El Al’s own data reveals a 24% surge in revenue per available seat kilometer, driven by an unprecedented 94% seat occupancy rate. CEO Ben Tal Ganancia shrugged off the near-perfect fill rate in a Globes interview, quipping that any empty seats were likely a “counting mistake.”

Ganancia’s levity aligns with her hefty NIS 6.3 million compensation package for 2024, up 10% from last year, including a NIS 3.6 million bonus, NIS 2.3 million salary, and NIS 600,000 in stock. Chairman Ben-Zvi outpaced her with a 29% raise, bringing his pay to NIS 5.4 million. While passengers grapple with high costs, El Al’s leadership reaps the rewards of a captive market. The airline sits on $654 million in distributable profits but remains barred from issuing dividends due to lingering COVID-era bailout terms.

Looking ahead, El Al aims for $4 billion in revenue by 2030, banking on a global aircraft shortage to sustain its edge. Critics, however, argue that its success comes at the expense of Israelis and American Jews left with few affordable travel options, fueling the price gouging debate.