Foot-and-mouth hits UK airport growth

The lingering impact of foot-and-mouth disease will mean that Britain’s major airports see only a small increase in passenger numbers this summer, operator BAA said today.

Figures at its seven airports from April to the end of June were up just 1.5% on last year, and the group warned it could be autumn before ‘‘more normal’’ growth levels are seen.

Chief executive Mike Hodgkinson said this assumed the disease was eliminated by the end of the summer.

The number of people visiting the UK was badly hit in the first two months of the quarter, BAA said, particularly with inbound traffic from the US and Ireland.

Overall, 32.6 million people passed through its airports, which include Heathrow, Gatwick and Stansted, compared to 32.1 million in the first quarter last year.

Profits at the group were up, however, after a strong increase in retail sales as BAA continued to shrug off the effects of the abolition of duty-free sales.

The group has introduced shopping areas into arrivals lounges and more brands into existing shops, and the initiatives helped its UK retail arm push sales up to £124m - 9% above last year’s level.

BAA said the increase was also fuelled by more Britons deciding to take a break on the Continent, adding that the average amount spent per passenger was up 7% to £3.81.

Overall, pre-tax profit rose to £150m in the three months to June 30 before one-off costs, compared with £144m in the same period last year.

Total group revenue edged down 2.5% to £547m after BAA pulled out of a number of overseas duty-free operations.

‘‘Despite the unusually low traffic growth in the first quarter, the continued and successful implementation of our strategy means that the outlook for the company remains positive,’’ Mr Hodgkinson said.

He added he was confident that planning approval for Heathrow’s Terminal 5 would be granted before the end of December. The new building would help handle the growing level of air traffic.