Cost cutting returns Bmi to profit

A cost cutting derive pushed British airline, Bmi, back into the black after reporting a £2

A cost cutting derive pushed British airline, Bmi, back into the black after reporting a £2.1 million pre tax profit for 2004.

The figure, achieved despite the rise in fuel costs, compared with a pre-tax loss of £9.8 million in 2003.

Bmi chairman Sir Michael Bishop said: "We have achieved a return to profitability ahead of expectations. "A robust approach to controllable costs and an ability to compete effectively in exceedingly tough market conditions has had a positive impact on our trading results."

Bmi group, which includes low-cost carrier bmibaby, carried 10.5 million passengers last year - an 11per cent rise on the 2003 figure of 9.4 million.

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Planes were 70 per cent full in 2004 - an improvement on the 2003 figure of 67 per cent. Group turnover increased from £772 million in 2003 to £830 million in 2004. Last year saw the introduction of new services out of Manchester to North America and the Caribbean.

Bmibaby carried 3.2 million passengers in 2004 - a 16 per cent increase on the 2003 total of 2.8 million.