BAA expects rise in passenger spend

Dermot Davitt

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Net retail income per passenger is forecast to rise 2% above last year

BAA today (March 28) released a trading statement ahead of its close period on April 1 and the announcement of its full-year results on May 16. The group said that its UK airport retail business "continued to perform strongly and is expected to deliver growth in net retail income per passenger of around 2% for the full year."

In fiscal year 2004/05 net retail income per passenger increased 1% to £4.16 ($7.28).

In the 11 months to February 28, BAA's nine airports handled a total of 145.1m passengers, up 3.1% on the prior year, including 133.2m for the seven UK airports. Allowing for the later Easter holiday this year, the current trend indicates growth for the UK airports of just over 2% for the full year.

BAA also said that London Heathrow terminal five is on budget and on schedule to open on March 30 2008.

BAA CEO Mike Clasper said: "The Group is on track to deliver trading performance for the year in line with our expectations, a good result given the impact of a softer UK economy and increased security requirements. The momentum we are seeing right across the business, particularly with the integration of Budapest airport, progress on T5 and the implementation of the Delivering Excellence programme, adds to our confidence that as we move forward we will deliver enhanced value for shareholders."