Losses triple at BAA as its traffic drops
AIRPORT operator BAA yesterday said losses at its London airports had more than tripled to £545.7m in the first half of the year.
Exceptional items pushed the company into the red, but BAA said its underlying earnings were up 28 per cent to £469.9m.
The airport operator took a hit from finance costs linked to its £9.7bn debt pile and a £218.5m payment needed to fill its pension deficit.
It also took writedowns of around £290m on the value of some of its assets, including its ageing terminals at Heathrow.
Revenues at the firm, owned by infrastructure group Ferrovial, increased 12.8 per cent to £1.1bn in the period, despite passenger numbers plummeting 7.4 per cent to 55.2m.
Despite its woes, BAA warned that it would not be pushed into a sale of Gatwick at a depressed price. The Competition Commission has told the firm to sell off Gatwick, Stansted and either Edinburgh or Glasgow.
Meanwhile, British Airways said yesterday will scrap all of its meals – apart from breakfast – on short haul flights, in a bid to save £22m a year.
Passengers on flights that last less than two-and-a-half hours will only get snacks and a drink and will be unable to buy meals or sandwiches, although those flying before 10am will still get breakfast.
The measure, which starts next week, comes after the airline lost a record £400m last year.