BAA warns on Heathrow traffic as losses increase

City A.M. Reporter
BRITISH airports operator BAA scaled back its forecasts for passenger traffic at Heathrow during the peak summer season and said higher interest costs pushed it deeper into the red in the first-quarter, wiping out the benefits of revenue increases and lower costs.

BAA, majority owned by Spanish infrastructure group Ferrovial , said yesterday that its outlook for passenger traffic at Heathrow was more cautious, reflecting “an expectation of somewhat lower traffic than previously projected over the peak summer season”.

It said higher retail income from duty free shops, restaurants and car parking should limit the damage.

The warning on Heathrow traffic volumes came as BAA posted a pre-tax loss for the first three months of the year of £211.5m – worse than the £195.5m posted a year earlier.