BAA records £255.8m loss

Revamped Heathrow Terminal 2 and Olympic games fuel optimism for 2012.

Revamped Heathrow Terminal 2 and Olympic games fuel optimism for 2012.

BAA, the owner of Heathrow and Stansted airports, has reported revenue of £2.28bn for the year ended 31 December 2011, an increase of 9.9 per cent compared with £2.07bn last year. However, the operator reported a £255.8m loss for the year. In 2010 that figure was £316.6m.

The group's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was £1.13bn in 2011, compared with £966.9m in 2010.

Turnover from continuing operations was £2.28bn in 2011 compared with £2.07bn in 2010. Pre-tax loss dipped by 19.2 per cent to £255.8m in 2011 as against £316.6m in 2010.

In 2011, Heathrow airport recorded passenger traffic of 69.4m, an increase of 5.5 per cent compared with 65.7m in 2010. The airport also used a record 99.2 per cent of its maximum permitted annual arrivals and departures in 2011.

Traffic at Stansted Airport declined by 2.8 per cent to 18 million passengers in 2011 compared to 18.6 million in 2010. The group's passenger traffic increased by 3.7 per cent to 87.4 million in 2011 (2010: 84.3 million).

The group recorded an operating profit of £572.1m in 2011 compared to £548.7m in 2010.

Colin Matthews, CEO of BAA, said: "BAA delivered a strong operational performance in 2011 with record traffic levels and high service standards at Heathrow. We continued to invest significantly in further improving our airports during 2011, particularly on the new Heathrow Terminal 2.

"The group's financial position has been strengthened with £3bn in new financing completed in the last 12 months and we have fully repaid our £4.4bn bank bridge loan nearly two years early," added Matthews.

The group anticipates strong growth in turnover, adjusted EBITDA and operating cash flow in 2012. The construction of the new Terminal 2 at Heathrow airport and London 2012 Games are expected to enhance the group's revenue in 2012.

At 31 December 2011, the group had total fixed assets £12.52bn.