UPRISINGS in the Middle East and Egypt as well as rising fuel prices have been blamed for £105 million losses at Castle Donington-based airline BMI.

But the company, which employs 527 people at Donington Hall, predicts a "return to profitability" in the medium term.

A spokeswoman for the firm said she was unable to answer questions on whether the losses, made in the first half of this year, could affect jobs at its headquarters or BMI Baby flights from East Midlands Airport.

She said: "As per other airlines, BMI has been affected by the political unrest in the Middle East and North Africa plus increased fuel prices. We continue to focus on offering flights to and from key domestic destinations and to international destinations in Europe, Russia, the Middle East and Africa.

"Earlier this year the airline launched new routes to Morocco, Norway and Switzerland.

"In June, BMI announced new flights to India and, in July, to France.

"The airline's short-haul and mid-haul fleet have been refurbished with new seating and cabin interiors.

"BMI continues to offer customers great service to drive their loyalty. This will help the airline achieve its target of returning to profitability in the medium term."

Top aviation expert John Strickland, of JLS Consulting, formerly employed by British Midland Airways and British Airways, said "medium term" meant years rather than months.

He said BMI was improving the breadth of its offer by introducing new medium and long-distance flights but that he agreed that short-term recovery looked unlikely.

Mr Strickland said: "Their mix of fleet doesn't particularly help them. They are filling 50-seat regional jets when the cost to the airline per seat is much higher than larger aircraft."

The £105 million losses were 29% worse than those in 2010.

Both BMI baby, which flies from East Midlands Airport, and its parent company are housed at the Donington Hall site. BMI is owned by German airline operator Lufthansa.

When the Derby Telegraph approached Lufthansa for a comment on the losses, a spokesman for the firm said all questions should be put to BMI.

A spokesman for the German carrier previously told a national newspaper: "Our focus is to turn BMI around. We are committed to BMI. Of course we want to provide profits, and there is a pressure for BMI to provide that, and everyone at BMI is working hard to do that."