justified — or Pure Price Gouging?
An Economic and Halachic Analysis of Airline Pricing During Crisis
The Question
During the war in Israel, most foreign airlines suspended service. El Al remained one of the only airlines flying in and out of the country. Prices for tickets jumped by thousands of dollars. El Al said the increase was due to global problems in getting airplane parts and delays in maintenance.
But is that true? Or was it price gouging — taking advantage of people in crisis? And more importantly for observant Jews: Is it halachically acceptable to support and use a company that raises prices so sharply in a time of war?
What El Al Claimed
El Al gave several reasons for the high prices:
- Shortages of aircraft engines and parts
- Delays in maintenance
- Limited delivery of new planes
- General strain in the global aviation supply chain
These issues were real, and the global airline industry was affected. But they mostly caused delays in expanding fleets — not in flying the planes already in service.
What Actually Happened: The Real Numbers
According to public financial records and a class-action lawsuit filed in Israel:
- El Al’s operating costs dropped by 3% in 2024 compared to 2023, and by 11% compared to 2022.
- At the same time, ticket prices rose 14% to 16%.
- Profit per passenger skyrocketed — in fact, El Al earned 15 times more per passenger-kilometer than before the war.
- Load factor (the percentage of seats sold) hit 94%, meaning the planes were nearly full.
- Industry analysis shows that while dynamic pricing is standard in aviation, what El Al did during the Israel–Gaza war went far beyond normal fluctuation. Airlines typically adjust fares based on demand, availability, and market risk — but when most international carriers suspended flights to Israel, El Al became a de facto monopoly. This allowed them to raise fares by hundreds or even thousands of dollars, sometimes charging $3,000–$5,000 for economy seats. A class-action lawsuit filed in Israel in 2025 accuses El Al of exploiting a national crisis for profit. Testimony from former Antitrust Commissioner Prof. David Gilo revealed that El Al’s operating costs actually fell 3–11%, while profits soared and revenue per passenger-kilometer rose 15× above normal levels, strongly suggesting the price hikes were not due to cost pressures, but unchecked market dominance.
- El Al defended itself by pointing to global shortages of aircraft, engines, and spare parts — but international industry data contradicts this as a justification for sharp fare increases. While it’s true the aviation sector faced delays in aircraft and engine deliveries (especially from Pratt & Whitney and Rolls-Royce), global airfare trends were falling in 2024 due to post-pandemic recovery and easing inflation. According to IATA and Reuters, airlines worldwide reduced fares in real terms, even as they coped with capacity constraints. El Al, by contrast, raised fares and recorded record profits. The Israeli Competition Authority launched a probe into these practices in early 2025, and consumer organizations labeled it as “exploitation of wartime dependency.” The consensus among analysts and media reports is that El Al’s pricing was driven by opportunity, not necessity — and stood out even in an industry known for fluctuating rates.
In other words:
Costs went down. Prices went up. Profits exploded.
That is not called “survival pricing.” That is called “price gouging.”
The Halachic and Moral Issue
For an observant Jew, financial dealings must follow Torah standards — not just what is technically legal or “what the market allows.”
Here’s what Halacha and Torah sources say:
1. Ona’ah – Charging Too Much
The Torah forbids charging more than one-sixth above the market value in regular business (Vayikra 25:14). Even though the market shifted during war, when the price increase is extreme and unjustified by cost, this may still violate the spirit of ona’ah.
2. Chamas – Oppressive Business Practice
The Chazon Ish wrote that when a person has no choice and is taken advantage of, even if it’s “legal,” it is still called chamas — a form of stealing through power. That applies here.
3. Lifnei Iver – Enabling Wrongdoing
Giving money to a business that profits by hurting others, especially during a crisis, is enabling sin. Even if the business is Jewish or Israeli, that doesn’t make it kosher.
4. Chillul Hashem – Public Shame of Torah Values
When religious Jews support abusive pricing, it sends the message that Torah allows or supports greed. That’s a public desecration of Hashem’s Name.
5. Obligation to Support the Community
The Torah wants Jews to act with mercy, justice, and support for their brothers. Paying thousands of dollars to a company that made huge profits during a national emergency goes against that value.
Conclusion: Is It Permitted to Use El Al in These Conditions?
If there is:
- A danger to life (pikuach nefesh),
- A clear mitzvah need (like a funeral, medical care, or Torah obligation),
- Or no alternative whatsoever,
then it may be permitted.
But for business, vacation, or other optional travel — it is halachically wrong to support a company engaging in price gouging, especially during a crisis.
This is not just an issue of money — it’s a question of values. Supporting injustice, even with a plane ticket, is still supporting injustice.
Final Note
“Do not give your money to oppressors,” writes the Sefer Chassidim. “For you are strengthening their hand to rob others.”
We are commanded to live with faith, but also with justice. Torah is not just what you learn — it’s what you do with your money when others are suffering.
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