Bermuda Aviation Services (BAS) warned that its profits are likely to fall by 50 percent for the financial year as a result of the September 11 terrorist attacks.

BAS, which released unaudited six months results for the first half of the year which saw net income and revenue improve by 4.6 percent and 14 percent respectively, said the trend would reverse dramatically for the last six months of the year.

BAS chairman Neville Conyers said in a statement on Friday: "Our satisfaction with the results is mixed with sadness as the events of September 11 not only clouded the outlook for the rest of the year, but of more significance cause the loss of several positions within the company as we try to overcome the loss of revenue and earnings that will result as a consequence of that fateful day.

"The outlook for our business for the year is not very good as revenue is expected to decline 18 percent with net results at year end forecast to be 50 percent lower than those of last year. Aviation related revenues for the next six months will decline by more than $2.3 million as schedules are cut and catering uplift is decreased."

And Mr. Conyers called for a review of the Island's aviation policy, saying: "If there was ever a time for Bermuda to address its aviation strategy and the support required to keep air services to the Island intact, it is now. It is a critical component of our economy that not only provides and supports a significant percentage of jobs in the hospitality industry, but it is the catalyst for a significant number of indirect employments such as restaurants, taxis and retail stores."

In spite of the poor outlook for the company's airport services, Mr. Conyers predicted the company will be able to report a profit at the end of the year, saying: "Contributions from the first half of the year and other diversified interest will however keep the company in the black."

For the first six months of the year, the company posted net income of $1.58 million - an increase of 4.6 percent over last the same period in 2000.

Mr. Conyers said revenue for the period, which ended September 30, 2001, was ahead by 14 percent to $11 million. The increase in revenue and net income was attributed to "significant contributions from our non-aviation companies".

The company has in recent years diversified its holdings to include several non-aviation businesses including the Crow Lane Bakery and joint venture BAS-Serco.