BAA’s profits are down by nearly 20% due to drop of 4.2 million in number of flyers last year. Heathrow traffic was down only 1.4% overall due to 3.5% increase in long haul traffic. Total passenger numbers covering 7 UK airports dropped by 2.8%. while Heathrow, Stansted and Gatwick combined registered 2.6% drop, accounting for 3.4 million fewer flyers.

The adjusted operating profit of the airport operator was £582 million, nearly 18.4% less than £713 million which it made in 2007. Apart from decline in passenger traffic, costs also escalated as a result of Heathrow T5 operations and additional expenses on security procedures.

But the group is bullish despite gloom. The rise in revenues for 2008 across whole UK group was 14.5% to £2.1 billion and for London airports it was 16% to £2.2 billion, mainly due to increase of 2.9% per passenger in shopping revenues and charging of higher landing fees, under new regulatory changes, at Heathrow and Gatwick.

Despite difficulties, company has planned investments worth £1.3 billion overall including £1.2 billion in London. BAA’s chief executive, Collin Mathews described 2009 as challenging year, but claimed BAA was resourced and structured to meet challenges successfully.

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