Airports operator BAA has credited Britons' love of shopping for providing some shelter from the aviation downturn.

The firm, which runs airports including Heathrow, Gatwick and Edinburgh, saw passenger numbers on north Atlantic routes fall by 38% immediately after the 11 September attacks on the US.

"The last financial year was without precedent," chief executive Mike Hodgkinson said.

"The aviation industry faced the toughest conditions for a decade."

But, largely thanks to "particularly strong" retail takings at UK airports, the firm was able to report reports of �512m for the year to the end of March, 6.4% down on the year before.

"In view of the challenging trading conditions since the tragic events of 11 September, the company has done well," chief executive Mike Hodgkinson said.

Net income at BAA's UK airports rose 4% over the year to �3.95 per passenger, hitting �4.17 in the September to March period.

Revival hopes

While overall passenger numbers were, at 121.9 million, 2.2% lower than the year before, BAA forecast passenger numbers reporting "strong growth" by the end of the year.

Longer term, the firm forecast traffic growing by 3.5% a year through London airports, to reach 153 million in a decade's time.

Last year BAA's London airports, which also include Stansted, attracted 105 million passengers.

Jubilee boost

The effects of the 11 September strikes were also reflected in results on Thursday from UK-based Jarvis Hotels, which saw profits slump 41% to �17.0m in the year to the end of March.

Custom from executives, particularly at hotels in the south east of England, was notably poor, the firm said.

But Jarvis, which operates 67 UK hotels, credited this week's jubilee festivities for helping boost prospects.

"We applaud the tremendous contribution to overseas tourism promotion created by the outstanding success of Her Majesty The Queen's Golden Jubilee celebrations," chairman John Jarvis said.

In the City, Jarvis shares stood 4p lower at 117.5p in lunchtime trade on Thursday.

BAA stock was 5p higher at 617p.