UK airport group profits buoyed by Heathrow Express

The British Airports Authority has said a 3% rise in Heathrow Express passengers helped lift underlying operating profits at the division to £16m (€23m).

But analyst Jeremy Batstone at stockbroker Charles Stanley said it was inevitable passenger growth would slow in the current financial year after last year’s strong comparatives.

However, he said growth of 3.5% at the London airports was good and that average passenger traffic was expected to grow by 3% over the next 10 years.

He said higher utility costs were among the major short-term risks to BAA.