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Profits take off for Bmi
The Bmi group has posted pre-tax profits of £2.1 million for 2004, up from a loss of £9.8 million the previous year.
The airline group has credited its positive performance to tight cost control following the implementation of the “Blue Sky” cost cutting programme aimed at reducing operating costs by £100 million over three years.
One initiative is to operate a single type fleet across the group.
Group turnover increased 7.5% in 2004 to £830 million and the airline carried 10.5 million passengers last year, up 11% year-on-year, enjoying load factors of 70% – up from 67% in 2003.
Bmi also reduced debt by £59million to £122million.
In a statement Bmi said: “The return to profit confirms that Bmi has incurred only two years of pre tax losses during the past 11 years and that as forecast, the group continues its improved financial performance.”
According to the airline, routes out of Heathrow remain competitive and the airline has seen a drop in business class traffic out of the airport.
Consequently a review of operations at Heathrow is being carried out.
Bmibaby boosted the group’s results with an increase in passenger carryings by 16% to 3.2 million, and load factors up from 71% to 78%.
Chairman Sir Michael Bishop said: “The Bmi group is well placed to meet the future challenges as our 2004 results demonstrate. 2005 has started well and providing market conditions remain stable I am confident of a further improvement in the group’s results in the current year.”
Report by Ginny McGrath
Ginny McGrath
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