Airport operator posts loss for first quarter after incurring costs over Heathrow's T5 opening
BAA has posted a loss for the first quarter of the year, blaming increased maintenance and security costs leading up to the opening of Terminal 5.
The airports operator revealed pre-tax losses were 拢62m in the three months until 31 March 2008, down from 拢89m in profits during the same period last year. Revenue rose slightly to 拢506m, up 9% from last year鈥檚 figure of 拢465m.
BAA spent 拢24m in 鈥渙perational readiness costs鈥� for the opening of Heathrow Terminal 5 in the three months to the end of March, compared to just 拢2m the year before. This included fit-out, testing and co-ordination costs.
Maintenance costs across the group rose 48% to 拢51m, up from 拢35m during the same period last year.
The 169% drop in profits was also due to a loss of 拢97m on the revaluation of BAA鈥檚 investment properties 鈥� down from a 拢2m increment last year.
Colin Matthews, BAA鈥檚 chief executive, said: 鈥淥ur operating profit was clearly affected by higher security and maintenance costs, reflecting the importance we place on delivering a safe and convenient service to passengers through higher standards and better facilities.鈥�
BAA鈥檚 net debt level during the period rose to 拢7.4bn, up from 拢6.9bn the year before. The level of its losses is unlikely to please shareholders, who pumped 拢400m back into the company earlier this month.
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