UK. bmi has reported a +6.6% increase in the group’s turnover to £772 million (US$1.4 billion) for the financial year ending 31 December 2003. Passenger volumes were up +25% to 9.4 million and load factors up from 63% to 67%.
The airline reported a pre-tax loss of £9.8 million (US$17.9 million), against a loss of £19.6 million (US$35.8 million) in 2002. Trading profits (pre-overheads, interest and exceptional items) increased to £23.5 million (US$42.9 million).
bmi chairman Sir Michael Bishop said: “2003 was another very tough year for many in the aviation sector, with the double impact of SARS and the conflict in Iraq hitting bmi in the first part of the year. The loss of transfer traffic at Heathrow from its 13 Star Alliance partners and other interline carriers cost our business in excess of £17 million (US$31.1 million) in lost revenues, and was the principal factor in delaying our return to profitability.
“Despite these difficulties, we ended the year in a much stronger position than we started, with continued and consistent growth in passenger numbers, improved load factors and strong cash flow liquidity.
“That performance has been carried through into 2004, and we are seeing revenues currently running +10% ahead of 2003 figures, with an upturn in Heathrow transfer traffic. Coupled with our continued focus on cost savings, we expect a stronger financial performance for the full year in 2004.”
bmibaby, the group’s no-frills subsidiary, carried nearly three million passengers during the year, making it the second-largest British low cost carrier.
Next month bmi will launch a new service from Manchester to Toronto in cooperation with Star Alliance partner Air Canada. Later this year, the airline will launch services from Manchester to Barbados, St Lucia and Antigua, making it the largest provider of transatlantic scheduled services outside London.
