Hurricane Fabian and its after-effects knocked almost 29 percent off Bermuda Aviation Services' profits last year, as flight cancellations and repairs cut revenues and increased expenses at the company.

BAS, which reported a near 30 percent drop in profits to $1.1 million in its half-year report immediately after Fabian, said it had net earnings of $1.2 million - or $1.17 per share - for the year ending March 31, down $500,000 from 2003.

Revenues of $16.4 million were off two percent or $400,000.

BAS said improved results in many of BAS's subsidiary companies failed to offset revenue losses from the reduced number of flights into Bermuda since Fabian and the Airport's limited hours of operation immediately following the hurricane.

Operating earnings of $1.1 million were 35 percent below 2003, although this was in line with the company's revised expectations. Operating expenses rose 1.5 percent or $200,000 due to repair and maintenance of hurricane damage.

BAS has officially closed its catering division, which it said has been unprofitable for several years, as airlines have cut back on their catering needs.

The company also revealed that it had extended its lease to be the exclusive service provider for private aircraft until 2014.

It said it has invested more than $800,000 to resurface the apron of the private aviation facility and to upgrade the lighting for night operations, which has increased safety and security at the facility.

BAS said it has also invested significantly in new equipment for Aircraft Services Bermuda Ltd. (ASB), which provides the airlines with baggage handling and cleaning services among other services.

The purchase of equipment such as new air stairs, baggage carts, a lavatory service truck and a container loader was necessary to replace similar pieces at the end of their cycles.

ASB's revenue for the year increased by three percent with operating profits also ahead three percent.

Co-chairman of the board Michael Darling told The Royal Gazette: “Originally BAS was entirely airport connected, but we've gone off into different areas.

“The slow and eventual demise of in-flight catering has hurt us and will never be replaced, but since we are broadly based, the future looks pretty good.”

The BAS group of companies includes Crow Lane Bakery Ltd., which BAS bought as part of its diversification strategy in 1997.

The Bakery saw a 30 percent increase in profits this year, with sales up three percent and expenses increasing just under two percent. Revenue for Weir Enterprises Ltd., which BAS acquired in February 2002, increased by eight percent.

Mr. Darling said: “With fewer people coming to Bermuda (by plane), the other areas we've gotten into have helped to fill the gap and will move us along.”