Israeli insurance firm Phoenix is taking a near-20% shareholding in flag-carrier El Al’s loyalty programme.
Phoenix is exercising an option to acquire the 19.9% stake as part of a financing transaction sealed earlier this year.
Under the agreement it is able to purchase up to 25% of the loyalty scheme, El Al Matmid Frequent Flyer.
El Al says Phoenix’s acquisition of the stake will generate around $14 million for the airline’s reserves. The airline will retain 80.1% of the loyalty scheme’s share capital.
The carrier agreed earlier this year to sell the frequent-flyer programme in order to provide additional liquidity.
As part of the transaction it entered a $130 million loan agreement with Phoenix, which will run to mid-2028.