Volcanic ash cost Heathrow and Stansted £28m in losses

AIRPORTS operator BAA took a £28m one-off hit from the six-day flight disruption caused by the Icelandic volcano.

The group, which owns six airports in the UK including Heathrow and Stansted, said despite the impact of the volcanic ash, which forced them to close both London airports, it remained financially resilient.

First quarter figures for BAA show revenue for the period came in at £456.1m, up from the same period last year when BAA made £432.2m.

BAA chief executive Colin Matthews said the numbers were robust given the impact of extreme winter weather conditions, enhanced security procedures and the industrial actions taken by British Airways (BA) staff.

Passenger traffic traveling through Heathrow and Stansted during the first three months of the year came to 18.6m, marking a small increase from last year when 18.5m passengers flew through both airports.

Customers spent more at BAA’s airports after net retail income per passenger rose 11 per cent in the quarter to £5.15.
Matthews said: “Our priority for remains the improvement of customer service and efficiency.”