I am an airline pilot and i saw this kind of thing(maybe not so bad) often. With all due respect to the commentators, who are pointing the finger to El Al, this is a typical case where people who has a very limited but in that circunstance big power and with small education is prone to abuse. El Al is politically responsible for it, of course, but to blame the all airline for that is exaggerated. Maybe that employee should not be where she is.
Israeli ambassador to U.K.: Elements of left 'in denial' about 'disease' of anti-Semitism (Haaretz)
from the article: El Al ordered to compensate humiliated Israeli Arab passengers