BAA narrows losses and plans £300m bond issue

BAA has reported a reduction in losses for the nine months to the end of September and strong growth in passenger numbers.

Pre-tax losses were £192.6m – were down from £784.7m in the same period a year ago.

Meanwhile evenue was up 4.4 per cent at £1.55bn.

The company reported "record passenger traffic" between July and September.

It also said it hoped to raise between £250 and £325m through a bond issue to refinance the remainder of its 465.8 million pounds loan facility, which is due in 2011.

BAA - which is majority-owned by Spanish firm Ferrovial – operates the airports at Heathrow, Southampton and Aberdeen, as well as Stansted, Glasgow and Edinburgh.

However, earlier this month it lost an appeal hearing against a ruling that it must sell Stansted airport, as well as either Glasgow or Edinburgh airport.

Chief executive Colin Matthews said: said: "BAA has delivered good results and we have strengthened our financial position through refinancing of nearly £2bn of debt.

"The outlook for the remaining months of the year is positive."