7 October 2010

BMI (British Midlands International) has reported that the airline has made an even greater loss in 2009 over previous years but insists that plans to revamp the company will lead to increased profitability. Recent accounts have shown that the airline, which is owned by Lufthansa, made a pre-tax loss of £198 million in the year to the end of December 2009, compared with a £180.8 million loss in 2008.

BMI’s passenger numbers dropped from 9.5 million in 2008 to 7.4 million in 2009. The most recent losses include the cost of a five-year restructuring programme to get the company back on track. The restructuring programme, which was launched in November 2009, is projected to attain annualised savings of £100 million, with the group aiming to return to profit by 2012.

The airline has cut nearly 600 jobs and removed 11 of its mainline aircraft since the end of 2009 under the recovery plan. The accounts also reveal that Lufthansa has agreed to provide a further £60 million to cover operational funding needs until the end of 2011.