BAA losses up on pension costs and loss on Gatwick
22.02.10
BAA announced pre-tax losses of £822m for 2009 today, much worse than the £324.2m loss it made in 2008. The airports operator said the increased losses were due to increased pension scheme deficits of £217.8m and a £277.3m loss from the sale of Gatwick Airport.
Apart from these exceptional charges, BAA was upbeat about its progress over the last year, with revenues up 8.3% compared to the previous year, at £1.98bn, boosted by a 7 percent gain in retail sales at Heathrow. Passenger numbers were down 3.8% at 85.9m.
The company said its increase revenue reflected ‘resilient’ traffic, higher tariffs and a strong performance from retail operations. 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 as a whole, and we will remain focused on improving our efficiency and the service we offer customers.’
The company is locked in a dispute with the Competition Commission over an order to also sell Stansted and either Edinburgh or Glasgow airports by June 30, 2011. BAA won an appeal against the ruling in December, seen by many as a temporary reprieve. Mr Matthews said: ‘If we’re 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 don’t wish to be required to sell airports at all.’ He added that BAA would be spending £1bn this year on upgrading its airports.
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book gatwick airport hotel or gatwick airport car park at the lowest price, click on these links to two great gatwick parking and gatwick hotels price comparison pages.
