UK's BMI turns in £100m loss

London
Source:
This story is sourced from Pro
See more Pro news »

UK operator BMI has turned in a huge post-tax loss of almost £100 million ($137 million), on a slight rise in revenue to £1.04 billion.

The figures follow a warning from shareholder and would-be parent company Lufthansa yesterday that BMI's losses for the year would be "considerable".

BMI has detailed the losses in preliminary figures today, for the year ending 31 December. Chief executive Nigel Turner says the airline has been affected by "unprecedented and extremely challenging" market conditions. Fuel costs rose by £60 million.

The carrier transported 10 million passengers last year, down more than 5%, although passenger traffic rose and BMI's load factor climbed slightly to 68.4%.

BMI says the first two months of this year have experienced tough trading conditions, and capacity has been cut back in all areas except its medium-haul operation, which has made "significant improvements" year-on-year.

It adds: "Market share gains have been made on many routes, but this is against a backdrop of downtrading and overall market conditions which are making the outlook for the rest of the year uncertain."

BMI says it is "reviewing all areas of the business" to conserve cash and cut costs. It has been negotiating a pay freeze with its personnel and the carrier says it plans to bring down costs by another £45 million against its budget for the year.