just a third of capacity although the company behind the flights is committed to carrying on.

Kiwi International Airlines launched its daily Newark to Bermuda route on May 25, its first international destination.

However since then passenger numbers have been averaging about 55 a flight, compared with the Boeing 727's 150 capacity.

The airline has had a chequered history since its launch two-and-a-half years ago when it served only internal American routes.

It lost money in 1994, but has bounced back so far this year, recording a profitable first quarter and seeing back-to-back profits in March and April of $640,000 and $964,000 respectively.

Last December it was also grounded for a few days because of a problem with the Federal Aviation Administration and it sacked one of its co-founders and chairman, Mr. Bob Iverson.

Yesterday, the airline's corporate spokesman, Mr. Jack Tucker, admitted passenger numbers to Bermuda were low, but he said the main reason was because the company entered the market late.

"They are not going as well as we would have hoped, but we entered the market late and did not get the chance to do the advance advertising.''