BAA set to meet passenger growth target

Airports operator BAA today said it remained on course for 6% annual growth in passenger numbers following a “robust” performance over the summer months.

The group, which includes Heathrow, Gatwick and Stansted among its sites, said passenger traffic numbers lifted 7.5% to 77.5 million in the six months to September 30, with pre-tax profits up 16.3% at £363m (€523.3m).

Today’s figures were helped by a slight improvement in the amount of money spent per passenger – up to £4.03 (€5.80) from £3.98 (€574) a year earlier – with total retail income from BAA’s seven UK sites ahead 9.1% at £312m (€449.7m). That increase came despite the impact of EU enlargement on the World Duty Free business.

Revenues from regulated airport charges lifted 13.2% to £446m (€642.9m), with 7.6% growth in passenger numbers at Heathrow helping its income from charges lift 17.2% to £259m (€373.3m).

Stansted’s continued boom as an airport for low-cost airlines resulted in 12% passenger growth and a 14.9% hike in overall revenues.

BAA chief executive Mike Clasper described the half-year figures as robust and said the growth in traffic over the six months had kept BAA in line to meet its target of achieving 6% passenger growth for the full year.

He added: “Overall, growing numbers and efficient airports with strong, innovative management mean that BAA is well positioned to deliver another sound performance in the second half of the year.”

However, Mr Clasper warned difficult industrial relations in the sector remained one of the company’s biggest challenges going forward.

BAA said it continued to focus on security and safety but added that wage inflation and pension costs had been the key contributors to an 8.7% increase in operating costs to £737m (€1.06bn) in the half-year period.

The company added that more than half of its total capital expenditure – up £106m (€152.8m) on a year earlier at £709m (€1.02bn) – related to the building of Terminal 5 at Heathrow.

Workers are now 45% through the development with the scheme on budget and ahead of schedule.