There were a number of reasons which on their own were not too bad but when added together resulted in BMED being unable to carry on, namely:
1. BA franchise fees of £15 million.
2. BA not allowing BMED to charge a fuel surcharge despite BMED being too small to be able to hedge fuel like BA had been able too.
3. BMED having to cancel all flights to Beirut, which was possibly their most lucrative route, whilst Lebanon was being bombed by Israel.
Any 1 or even any 2 of those items had been dealt with an a regular basis, these are always volatile destinations which is why they are so lucrative, but BMED was not big enough to deal with all those things coming at once.