Passenger rise boosts BAA profits

Falling ticket prices have been boosting demand for air travel

UK airport firm BAA has seen nine-month operating profits climb 18%, boosted by increasing demand for air travel.

Profit was £521m in the nine months to 31 December compared with £441m a year earlier. Sales were up 9% at £1.66bn.

The owner of Heathrow, Gatwick and Stansted said that passenger numbers climbed 6.5% to 110.6 million. Income per passenger rose to £4.15 from £4.10.

Analysts had been concerned about a dip in demand at BAA's airport shops after duty-free rules were changed.

'Good progress'

"The business has continued to make good progress," said Mike Clasper, BAA's chief executive. "Our retail business delivered solid results in adverse market conditions."

"We are on track to deliver our passenger forecast of over 6% growth for this year".

Mr Clasper said that BAA's controversial construction of a fifth terminal at Heathrow "is now more than halfway through development, remaining on budget ahead of schedule".