This is a sustainable business model?
Apparently. This is yeeeeears old. Though I think it's mainly done by newcomer OTAs who wants to break into the market and eventually raise the prices. Never followed it closely. But for as long as I can remember there were always Israeli OTAs that were selling specifically LY below market value. Regardless of during a sale or not.
Before covid, I was once in contact with one of these agencies (not Israeli) who sold a ticket and wanted to charge a friend of mine $250 for something that was the same day void and legally required. But they get away with it because not everyone knows the laws etc. So my friend bought a ticket at $20 off, and then was being ripped off for $250 for something that should be free. I called the agency to help him, and eventually succeeded knocking them down to $50 when they finally admit that it doesn't cost them money to cancel the same day.
I've seen one of these Israeli OTAs charge for seat selection when the airline clearly didn't. I don't know all their hacks, but thats sort of how it works.