BAA, which operates UK's Heathrow, Gatwick and Stansted airports, said its first-quarter pretax loss widened even as revenue rose 15 percent year-on-year as higher tariffs, retail income and cost control helped offset lower passenger numbers, according to Dow Jones Newswires.
Revenue for the three months to March 31 climbed to US$779 million from $672.60 million a year ago. Aeronautical income increased 32 percent despite a 10 percent reduction in passenger volumes.
Pre-tax loss for the quarter widened to $471.88 million from a loss of $82.97 million a year ago, primarily due to the depreciation of assets after the opening of Terminal 5 and the non-cash impact of market valuation of derivatives.
The company said operating profit fell 57 percent to $16.41 million from $38.5 million a year earlier due to charges associated with accelerated depreciation in value of two terminals at Heathrow as a result of the Terminal 2A development, and its defined benefit pension plan.
BAA chief executive Colin Matthews said, "The rest of the year will be difficult and will present more challenges but our focus remains on raising service standards and maximising efficiency."
BAA said it had received a number of bids for Gatwick Airport and expects to make an announcement about the outcome in coming weeks.
It is being forced by the UK competition regulator to sell off London's Gatwick Airport, Stansted Airport and either Glasgow or Edinburgh airports in Scotland.
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