Frequent Flyer club profits reach $75 million annual pace
The El Al customer club has become a highly profitable asset for the airline, with margins comparable to the high-tech sector. In the first half of the year, the club's profit jumped 22% to $38 million. The transition of the Fly Card credit card operation to Isracard is expected to drive further business growth.
Last week, El Al published strong financial results that surprised the market. At the end of the second quarter, the airline reported a net profit of approximately $126 million, double the figure from the same quarter last year.
El Al benefited from a significant increase in flights from Israel following Operation "Lion's Roar" and a surge in ticket prices, recording a 27% jump in quarterly revenue to $986 million.
Amidst a 15% rise in the company's stock, many overlooked the fact that El Al has begun publishing full financial reports for its subsidiary, the Frequent Flyer club (75%). These reports highlight how essential the club and its FLY CARD credit card have become to the airline's overall performance over the past two years. The club generates revenue from transaction fees, monthly card charges, loan interest, and foreign exchange conversion.
In the second quarter of this year, the Frequent Flyer club recorded $41 million in revenue, a 77% increase, while net profit jumped 50% to $26.2 million. For the first half of the year, revenue reached $70.9 million (a 48% increase), and net profit rose 22% to $38.2 million, representing an annual pace of about $75 million.
The club's net profit margin stands at 54%, a rate comparable to successful high-tech companies. In 2025, the club recorded $93 million in revenue, with profits increasing more than fivefold to $52.5 million.
Key figures for the Frequent Flyer club:
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514,000 — number of Fly Card holders.
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58% — share of total El Al revenue generated by club members.
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3.67 million — current membership, with a target of 4.2 million by 2030.
The jump in results occurred even before the full impact of the new agreement signed with Isracard last March. This partnership is set to provide the club with higher commission rates over the next decade compared to the previous agreement with Cal.
Market sources attribute this growth to an increase in membership and card usage intensity. Over the last two years, Fly Card transaction volumes have grown by 30%, significantly outpacing the 8.5% average market growth.
