Israel's El Al cancels order of 4 Boeing 777 jets

TEL AVIV, April 29 Thu Apr 29, 2010 3:17pm EDT

TEL AVIV, April 29 (Reuters) - El Al Israel Airlines (ELAL.TA) said on Thursday it is canceling its order with Boeing Co (BA.N) to buy four 777-200 jets.

"Since the agreement with Boeing was signed in 2008 and the global crisis occurred in world markets there have been substantial changes in the aviation sector," El Al Chief Executive Eliezer Shkedi said.

The airline also said its advance payment for the planes, which it did not disclose, would be credited toward future purchases of aircraft.

El Al owns 28 aircraft and leases 10, all Boeing.

In the fourth quarter of 2009, the company posted a net loss of $29 million, compared with a loss of $10.1 million a year earlier as revenue fell 11 percent to $413.7 million. (Reporting by Tova Cohen. Editing by Robert MacMillan)

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