El Al Reveals Strong Financials for Matmid Frequent Flyer Club
El Al has released financial data for its Matmid frequent flyer club, reporting $50 million in net profit for the first nine months. The subsidiary shows strong growth, driven by its new credit card partnership with Isracard.
El Al Israel Airlines has revealed detailed financial data for its frequent flyer club, Matmid, reporting an equity of 1.2 billion shekels ($375 million) and a net profit of 160 million shekels ($50 million) for the first nine months of the year, matching the previous year's figures.
The figures indicate that the Matmid club, should El Al choose to do so, could potentially become an independent publicly traded company. The subsidiary is highly profitable, with net revenues totaling $117 million in the first nine months of the year—a sharp 61% increase compared to the same period last year. Net profit accounts for approximately 42% of net revenues.
Established in January 2022, the Matmid club subsidiary began operations in July of that year. The company manages the customer loyalty program, allowing members to earn points across aviation and tourism activities. It also partners with financial institutions for co-branded Fly Card credit cards.
As of the end of September, the Matmid club has approximately 3.8 million members, with 570,000 credit cards issued. Membership grew by about 9% year-over-year, while the number of credit cards jumped by 14%. The transition to the Isracard Group for issuing Fly Card, replacing Cal, is progressing faster than initially projected, with Isracard already issuing 373,000 cards.
El Al remains optimistic about the club's profitability. The transition of customers to Isracard is expected to provide an additional positive contribution to pre-tax profitability ranging between 100 million and 130 million shekels annually on average.
