More like this
Profits nosedive at BAA
The UK airport owner announced an increased first-half loss this morning, as the recession took its toll on passenger numbers
BAA, which runs Heathrow, Gatwick and Stansted airports, said it lost £545 in the first six months of the year. The loss tripled as passenger numbers fell 7.4 per cent in the half to 55.2m, in line with cuts in services by airlines. The drop in travellers has been underway for 14 consecutive months as the recession reduces travel spending.
Chief executive officer Colin Matthews said: "BAA's underlying financial performance remains in line with our expectations. Trading conditions for the industry remain difficult and we remain focused on improving service standards and delivering a more efficient operation."
BAA has trouble on several fronts at the moment. Owner Grupo Ferrovial, the Spanish building group, opposes the anti-monopolies commission's decision to force it to sell Gatwick and Stansted airports, as well as one of its Scottish airports, in a bid to open up competition.
The enforced sell-offs have come at a difficult time for the company, with credit still squeezed and demand for expensive assets subdued. In addition, Ryanair, the biggest Stansted carrier, recently said it would cut its presence there this winter due to high fees. BAA also has debts of £9.7bn and a growing pension fund deficit. ·
