Airports operator BAA says growing confidence among airlines and a solid economy will underpin strong passenger traffic after Heathrow airport boosted third-quarter profit.
Higher landing charges and retail income at Heathrow helped offset flat operating profit at its two other London airports, with operating costs rising at Stansted - to support its rapid passenger growth - and at Gatwick for bigger a security bill.
Third-quarter operating profit for the three months to the end of December jumped 8 per cent to £149 million sterling on sales of £499 million, up 4.2 per cent.
Despite the strong quarter, shares of BAA dipped 0.4 per cent this morning morning as the market focused on the 1 per cent rise in operating profit to £500 million for the nine months. The forecast median was £501 million. Nine-months sales rose by 3.5 per cent to 1.54 billion.
BAA, which is not as sensitive to economic cycles as airlines, draws its income from airline take-off and landing fees, car parks, retail rent, airport advertising and its duty-free shops.