Security costs push BAA into loss

BAA spent �24m getting T5 up and running in the quarter

The airport operator BAA has blamed higher security and maintenance costs for it making a loss during the first three months of the year.

BAA reported a pre-tax loss of �62m compared with a profit of �89m in the same period last year.

The airport tariffs the company charges did not go up to cover the extra costs until the beginning of April.

BAA, which is owned by Ferrovial of Spain, also spent �24m getting Heathrow Terminal 5 operational in the period.

Terminal 5 opened on 27 March, right at the end of the period, so costs from the disruption and baggage problems which hit the terminal will not be seen until results for the current quarter are announced.

BAA said that its net debt level had risen 6.7% to �7.4bn. There has been some concern among analysts at the level of debt held by BAA, which had to raise an extra �400m from shareholders earlier this month.

The company may also come under pressure to sell one or more of its airports as both the Competition Commission and the UK government are reviewing airport ownership.

BAA owns Heathrow, Gatwick, Stansted, Edinburgh, Glasgow, Southampton and Aberdeen airports.

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