El Al set to pay 50 million shekels in long-running cargo cartel class action

El Al is expected to pay 50 million shekels to customers in a class action filed 13 years ago, alleging it belonged to a global cargo cartel that coordinated air-freight prices. The Central District Court is due to consider approving a settlement in the case, which concerns shipping customers from 26 years ago.

The lawsuit was filed in 2013 by the nonprofit Success for Promoting a Fair Society against El Al Israel Airlines and other defendants. It claimed the companies in the cartel coordinated several parts of air-cargo pricing, especially fuel and security surcharges. El Al has said in the past that it was not part of the alleged restrictive arrangement, and that investigative authorities in Israel and abroad examined the complaints and decided not to proceed against it. In 2020, the court approved the case as a class action.

The compensated group includes El Al customers who bought shipping services, directly or through freight forwarders, to or from Israel, except the United States, between January 1, 2000 and February 14, 2006. Under the proposed revised settlement, El Al would pay the class 50 million shekels, subject to court approval.

The total cost to El Al in the case, including compensation, a reward to the lead plaintiff and legal fees, would be 59.9 million shekels. The settlement money will not go directly to claimants, but will be placed in a trust account and distributed by a special court-appointed official. Any remaining funds after distribution will not return to El Al, but will go to the Justice Ministry’s fund for distributing court-awarded funds, earmarked for public projects to help rebuild communities around Gaza. The settlement request was filed on June 9, objections may be submitted until September 14, 2026, and the deal becomes final only after court approval. It was signed without either side admitting the other’s claims.