BAA report bigger losses on Gatwick sale loss and pension costs
22.02.10
BAA reported pre-tax losses of £822m for 2009 today, much worse than the £324.2m loss in 2008. The airports operator said the increased losses were caused by increased pension scheme deficits of £217.8m and a £277.3m loss from the sale of Gatwick Airport.
Apart from these exceptional charges, BAA is upbeat about its progress over the last year, with revenues up 8.3% compared to 2008, at £1.98bn, boosted by a 7% gain in retail sales at Heathrow. BAA said its increase revenue reflected ‘resilient’ traffic, higher tariffs and a strong performance from retail operations. Passenger numbers were down 3.8% at 85.9m, and down 1.5% at Heathrow.
Chief executive Colin Matthews said: ‘Our financial performance remains resilient, especially at Heathrow, which benefits from its position as the UK's only hub airport, higher retail spending and strong cost control. We expect 2010 to present further challenges for the industry, and we remain focused on improving our efficiency and the service we offer customers.’
The company is in dispute with the Competition Commission over an order to sell Stansted and either Edinburgh or Glasgow airports by June 30, 2011. BAA won an appeal against the ruling in December, seen by most as a temporary reprieve. Mr Matthews said: ‘If we are required to sell airports then being able to do so at a reasonable time is clearly in our interest. That means when market conditions are reasonable and we can hopefully control the process ourselves. Of course, we do not wish to be required to sell airports at all.’ He added that BAA would be spending £1bn this year on upgrading its airports.
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