BEIRUT - According to Byblos Bank’s “Lebanon This Week”, National flag carrier Middle East Airlines (MEA) resumed direct flights to and from Baghdad for the first time since 1981. MEA will have four flights per week to Baghdad for the time being, and plans increase then to daily flights in the near future. Also, the airline is considering direct flights to Erbil and Najaf and is conducting related feasibility studies. In parallel, MEA's Chairman, Mohammad el Hout expected the airline to post net profits in excess of $100m in 2009 due to the record tourism season. He indicated that MEA will receive two new Airbus planes in 2010 and an additional one in 2011, expanding its fleet to 16 aircraft. In parallel, the government recently extended the exclusive rights of MEA on certain routes, as these rights were about to expire in 2011. 

MEA underwent a restructuring program in 2001 that witnessed the layoff of more than 1,500 employees, or 40% of its staff, in addition to the cancellation of unnecessary flights and routes. Subsequently, the company managed to reverse 26 years of losses and returned to profitability in 2002. The national carrier also modernized its fleet, as it completed in 2003 its first fleet upgrade since 1975. The company's income turned from losses of $87m in 1997 to a net profit of $60m in 2007. It is not possible to independently verify the actual financial state of the national flag carrier, as it does not publish its balance sheet and income statement.