Nov. 26--El Al Israel Airlines Ltd. (TASE: ELAL) continued to face turbulence during the third quarter as it was squeezed by the global economic crisis, which has cut into tourism, and rising fuel prices.

The airline today published its financial report for the third quarter of 2009. For what is normally a strong quarter, net profit fell 60 percent to $12.3 million from the $31 million net profit for the corresponding quarter of 2008.

In the financial report, El Al appended a new report from the International Air Transport Association (IATA), which predicts that the world's airlines will lose an aggregate $11 billion in 2009, $2 billion more than in its previous forecast in June. IATA predicts that airlines' aggregate revenue will fall 15 percent to $455 billion in 2009 from $535 billion in 2008. Although IATA believes that the situation will improve in 2010, airlines will still accumulate losses -- $3.8 billion altogether. IATA believes that passenger traffic will increase by 3.2 percent next year and cargo transport by 5 percent. The average price of crude oil is predicted to be $72 per barrel.

The Central Bureau of Statistics reports that 1.3 million Israelis traveled abroad during the third quarter, 3 percent more than during the corresponding quarter of 2008. However, 18 percent fewer Israelis traveled abroad during January-September, compared with the corresponding period of last year, due Operation Cast Lead in January and continuing economic weakness. Tourist entries fell 3 percent compared with the corresponding quarter to 575,000 during the third quarter, and were down 16 percent in January-September, compared with the corresponding period.

The result is that El Al's revenue fell 18 percent to $496.1 million for the third quarter from $606.9 million for the corresponding quarter. Average revenue per passenger fell 20 percent, mostly because of lower prices for business and tourist class passengers. The air cargo market also plummeted. The Central Bureau of Statistics reports that imports by air cargo fell 14 percent, compared with the corresponding quarter, to 5,000 tons in the third quarter, and exports by air cargo fell 15 percent to 6,000 tons.

El Al's share fell 0.8 percent by midday to NIS 0.96.

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