Heathrow slims losses at BAA
HEATHROW airport passenger numbers rose five per cent to a record 69.4m last year, helping BAA to narrow its losses.
The airport operator made a loss of £255.8m in the year to 31 December, compared with £316.6m the year before.
The firm’s revenues rose 10 per cent on last year to £2.28bn, the firm said in a statement.
Passengers at Stansted airport, which BAA must sell under a competition ruling, dropped by 2.8 per cent to 18m.
The company said the total number of passengers at its airports rose 3.7 per cent to 87.4m.
BAA said: “Of Heathrow’s major markets, European traffic showed the most significant year-on-year growth, increasing 7.6 per cent to 28.5m passengers.”
Heathrow operates at almost full capacity and BAA said the airport used a record 99.2 per cent of its maximum permitted annual arrivals and departures last year.
BAA said this meant it was unable to keep up with demand for new routes to growing markets in places in Asia, such as Manila, Shenzhen and Jakarta.
“Chinese airlines have come to us saying they want to add routes from Heathrow to cities in China but we have to turn them away because there’s no space – the airlines can’t believe it when we say no,” said Colin Matthews, BAA’s chief executive.
“However, growth has come because there was no disruption in 2011 and thanks to aircraft sizes increasing and load factors being at record levels, which we see continuing in 2012.”
Matthews said investors can expect a dividend payout of £60m next year.