BAA posts 7.3% rise in retail revenue

Lorna Strickland

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UK airport manager BAA's full-year results show good retail growth in 2004-5

BAA has posted a 7.3% rise in net retail income as part of its year ending March 2005 results. Net retail income rose £548m ($1,047m) to £588m($1,123m). 

Net retail income per passenger increased from £4.12 ($7.87) to £4.16 ($7.95) representing an increase of 1%. 

The group's overall revenue rose by £145m to £2.1bn ($3.9bn) and BAA attributed this mainly to increased operations at its UK airports—where revenue increased by £143m to £1.9bn ($3.8bn). World Duty Free operations were recognised as an important factor for the UK figures.

"A strong retail performance [was achieved] in challenging circumstances. And this was despite adverse external conditions during the year, notably the impact of the enlargement of the EU and the effect on passenger spending against the weak US dollar," said a statement released by BAA.

International businesses, not including associates and joint ventures, grew revenue by 11.3% to £59m ($112.7m), primarily due to the new retail management contract at Baltimore airport and increased traffic charges from BAA's Naples airport subsidiary (Gesac).

Passenger numbers rose by 6.3%, with first-half growth of 7.5% reflecting the recovery from the Gulf War and SARS in 2003/04.