British airport operator BAA has posted a 4.9 per cent rise in full-year operating profit thanks to record passenger traffic at its seven British airports.
BAA said it made a group operating profit of £616 million sterling for the 12 months to the end of March 2004, up from £587 million in the previous year.
Analysts' forecasts were in a range of £606 million to £631 million with the average at £617 million, according to 12 estimates compiled by BAA.
The owner of Heathrow airport, the world's busiest international hub, said on Tuesday it expected more than 6 per cent growth in passengers through its British airports this year after 133.4 million passengers passed through its gates in 2003/04.
"Looking forward, although the international political outlook is likely to remain uncertain we believe that robust passenger growth will continue as the UK economy strengthens along with those of key regions such as North America and Asia," Chief Executive Mike Clasper said.
BAA said it had recommended the total dividend for the year should be increased by 5.3 per cent to 20 pence per share. Net debt stood at £2.77 billion as the company has borrowed funds to complete major airport infrastructure projects.
Not as sensitive to economic cycles as airlines, BAA draws its income from airline take-off and landing fees, car parks, retail rent, airport advertising and its duty-free shops.
Net retail income per passenger was up 2.7 per cent and in the fourth quarter it jumped 3.7 per cent as demand for air travel in Europe and long-haul destinations continued to pick up after the Iraq war and SARS virus last year.