Atlantis Submarines (International Holdings) Inc. — feeling the pinch from Hawai'i's tourism downturn — reported lower revenues and operating profit from its local business in the third quarter.

The Vancouver-based company said in a regulatory filing that its share of Hawai'i operations had revenue of $4.69 million in the July to September period, or $693,000 less than it did a year earlier.

Atlantis said the markets hit the hardest were Kona and Maui, where revenue experienced a sharp drop of 29 percent each because of lower visitor arrivals.

It noted the demise of Aloha and ATA airlines, along with the loss of two interisland cruise ships, had hurt the operations.

The company is running a special on its submarine tours in Hawai'i, giving customers a 10 percent discount when they book on the Internet.

On O'ahu, it said its Navatek cruise business was off 15 percent while submarine revenues were down 12 percent.

It said operating profit for Hawai'i fell to $881,000 during the quarter from $1.35 million in the like period in 2007.

Atlantis also operates passenger submarines in the Caribbean and Guam. It claims its Hawai'i-based Atlantis XIV submarine is the largest passenger submarine in the world at more than 100 feet long.

The company reported overall revenues, including operations at seven sites in the Caribbean and Gulf of Mexico and another in Guam, fell to $8.36 million from $9.36 million a year earlier.

Net earnings for the quarter were $588,000 compared to a loss of $302,000 a year earlier.