The Battle for Israel's Aviation Credit Cards: Isracard Takes the Lead
A fierce battle is reshaping Israel's aviation credit card market as Isracard secures dominance with FlyCard and Super Fly, challenging rivals Cal and Max.
About six months ago, an earthquake shook the traditionally dormant aviation credit card market in Israel. FlyCard, the flagship card in this sector, transitioned from Cal—which operated it through Diners—to Isracard. The move came as a major surprise. El Al's FlyCard is considered the strongest credit card in the market, boasting a significantly higher-than-average usage volume. At the time of the transition, the Frequent Flyer Club had approximately 3.5 million members, with about 550,000 holding the FlyCard credit card.
The move is largely credited to Isracard CEO Itamar Forman, who took office with great energy, alongside FlyCard CEO Moshe Morgenstern. The Phoenix holds a 25% stake in the club alongside El Al, which holds 75%. Around the time of the transition to Isracard, the club's valuation reached approximately 2.7 billion shekels, roughly double the valuation it was given four years prior. Aviation clubs are considered attractive globally primarily due to the types of benefits they offer. Customers accumulate points that can be converted into flight tickets, upgrades to more expensive classes, lounge access, duty-free discounts, and purchases in other areas such as electronics, entertainment, and leisure.
Isracard's Massive Growth and Cal's Countermove
El Al's Frequent Flyer Club has become a highly dominant player in recent years, a status reflected in its credit card. Market estimates indicate that about 15% of Cal's revenues came from FlyCard, alongside about 25% of the company's profit. For Isracard, this is a highly significant move. The company expects the FlyCard transition to yield an annual pre-tax profit of 120-160 million shekels every year over the coming decade, representing a cumulative potential of 1.2-1.6 billion shekels. Despite the massive investment in advertising and launch, FlyCard estimates that the contribution to profit will be substantial already this year.
Cal was surprised by the transition, but new CEO Yafit Griani reacted swiftly. The company sued FlyCard for breach of contract while simultaneously investing tens of millions of shekels in advertising, gifts, and benefits surrounding the launch of a new card, Flyall. The chosen name was successful, though it also sparked a legal dispute due to its similarity to FlyCard. Estimates suggest Cal managed to acquire about 100,000 customers for Flyall, a significant achievement in a short period.
New Entrants and Strategic Advantages
About a month ago, another player entered the arena. Rami Levy and Israir, together with Isracard, established Super Fly, a card starting out with a base of about 200,000 Rami Levy customers. Israir acquired a 10% stake in the club, which currently stands at a valuation of about 315 million shekels. Alongside these, Max operates MAX Travel, a card launched about a year ago that allows users to earn cashback and use it in aviation and tourism.
"In the current battle for aviation credit cards, Isracard arrives with the strongest position, holding both cards directly connected to airlines."
Which card will win the battle for the consumer's wallet? There is a significant difference between El Al's FlyCard and Israir's Super Fly—both in partnership with Isracard—and Cal's Flyall and Max Travel. FlyCard and Super Fly rely directly on airlines, granting them greater flexibility regarding flight-related benefits, from tickets and upgrades to airport lounge perks. In contrast, Flyall and Max Travel rely more on a cashback model channeled toward tourism.
The Battleground and Future Outlook
The launches and the struggle among the four players in recent months are estimated at over 100 million shekels, spent on sign-up gifts, fee waivers or discounts, and massive advertising campaigns. Still, FlyCard and Super Fly hold a fundamental advantage: they are backed by airlines and actual aircraft. This allows them to offer benefits that are harder to replicate through cashback alone, a perk particularly prominent among business travelers. Hundreds of thousands of employees fly for work, but points accumulate in the individual traveler's name for future private flights.
Flyall and Max Travel offer value through tourism-oriented cashback, but they will need to continue investing in advertising and perks to retain customers. For Cal, Flyall was born partly as a response to losing FlyCard, successfully retaining some short-term customers. FlyCard also responded by establishing a tourism booking area for hotel stays, though its advantage here is smaller and serves primarily as a direct reply to Flyall.
For Isracard, the outlook is exceptionally strong, as it controls both airline-backed clubs—FlyCard and Super Fly. Beyond card revenues, these customers also engage in broader non-bank financial activities, including credit and loans. Rami Levy is expected to push aggressively to expand Super Fly's user base, leveraging a massive retail footprint where hundreds of thousands of shoppers pass through his supermarket branches weekly, ensuring low customer acquisition costs.
