BAA reports stronger Q3 sales, but profits down

British airport operator BAA reported a 1.6% fall in third quarter pre-tax profit, but stronger sales, as it remains confident that it has a solid foundation for profitable growth.

BAA, which operates seven airports including London's Heathrow, Gatwick and Stansted, said sales for the nine months to December 31 increased from £1.49bn (€2.18bn) to £1.54bn (€2.26bn) the year before, while profit before tax and exceptionals was down from £448m (€655.9m), to £441m (€645.7m).

BAA manages both the terminals and the airfields, overseeing operations such as security, mass transit, engineering, and customer services, including airport shops (World Duty Free), restaurants, car rental offices, and parking lots.

BAA also operates the Heathrow Express rail service and, through BAA Lynton, develops real estate around its airports.

Passenger traffic for the period increased to 103.8 million from 100.4 million the year before.

It added that the building of a fifth terminal at its Heathrow airport in London is on budget and ahead of schedule.

"Looking forward, we anticipate continued strong traffic, based on growing airline confidence and a solid economy," said chief executive Mike Clasper.