BBC NEWS | Business | Passenger spend lifts BAA profit

BBC NEWS | Business | Passenger spend lifts BAA profit: "Passenger spend lifts BAA profit

More passengers and a rise in spending gave BAA a lift
Increased passenger spending has helped airports operator BAA unveil a rise in full-year profits.
Falling costs also helped raise profits to �620m ($1.17bn) compared with �608m a year earlier.
Passenger traffic increased 2% to 144.6 million while retail income per passenger rose 2.9% to �4.28, lifting retail revenue 6.8% to �616m.
BAA is currently fending off a �8.75bn ($16bn) takeover approach from Spanish group Ferrovial.
The group said its latest results demonstrated its ability to deliver growth despite difficult operating conditions - including last year's London bombings and a strike at airline catering company Gate Gourmet.
The latter grounded British Airways flights at Heathrow for two days last summer.
'Strong growth'
'These results are a reminder of BAA's core strengths that enable us to consistently generate shareholder value: a unique portfolio in a dynamic sector; strong growth of our London airports; even stronger returns from our other businesses; and a first rate management team creating value,' chief executive Mike Clasper said.
BAA AIRPORTS
Heathrow
Gatwick
Stansted
Southampton
Glasgow
Edinburgh
Aberdeen


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Looking ahead Mr Clasper said he expected BAA to deliver a good financial performance this year, with a 3.5% increase in passenger numbers predicted.
'There are clear, value-creating opportunities ahead of BAA, such as our plans for Budapest, the transformation of Heathrow and a second runway at Stansted,' chief executive Mike Clasper said.
BAA has based much of its defence against the current takeover approach on the ability o"