Security woes bite El Al

Israeli airline El Al says it looks as if 2006 will be a losing year for the airline, thanks to skyrocketing fuel prices and the poor security situation in Israel and its neighbors. The airline can’t say exactly how big the loss will be, due to the uncertainty of both contributing factors, but whatever the figures are, this year will be a painful turnaround following the airline’s 94 percent profit increase last year.

El Al also told the media that general market conditions and intensifying competition from new and existing airlines – especially low-cost carriers – would likely have an impact on business. The airline is seeing fresh competition on its home turf, with Delta Airlines operating daily non-stop flights between Atlanta and Tel Aviv.