BAA, the operator that runs six UK airports, recorded a £317m loss in 2010, improving on 2009's loss of £822m.
The company, owned by Spain's Ferrovial, said that the loss was largely due to volcanic ash, strikes and snow, which BAA say accounted for 2.8m fewer passengers in 2010.
In April, a volcanic ash cloud from Iceland forced Heathrow and Stansted, two of BAA's busiest airports, to close for almost a week.
Strikes by the British Airways cabin crew and December's heavy snow also disrupted flights and services.
Colin Matthews, BAA's chief executive, said the company was expecting a strong increase in profits for 2011.