Traffic takes off for airport operator

This Is Money13 April 2012

THE UK's biggest airport operator BAA said passenger traffic rose 4.6% in December from a year earlier as long-haul travel recovered and more people flew on low-cost airlines.

BAA, whose seven airports include London's Heathrow, Gatwick and Stansted, carried 10.5m passengers in the month.

The increase reflected a recovery in long-haul traffic during the busy month leading up to Christmas compared to the previous period when global security fears, the SARS virus and weak economies impacted travel.

In Europe, more people also flew on cheap fares amid a price war by low-cost airlines.BAA said in a statement the Asian tsunami disaster on Boxing Day had a negligible impact on traffic for the month.

Long-haul services, excluding North Atlantic routes, recorded the strongest gains, rising 9.4%. Domestic markets rose 6.2% and European traffic increased 5.1%.

The North Atlantic market fell 1.2%. Traffic growth at London's Gatwick and Stansted - where low-cost carriers like Ryanair and easyJet have bases - outstripped increases at Heathrow.

In Scotland, the company's airports recorded the strongest growth. Passenger traffic at Glasgow rose 7.3%, Edinburgh jumped 6.9% and Aberdeen 8.6%.

For 2004 as whole, traffic was up 6.9% to a record 140.1m.

EasyJet shares rose this week after it reported a 28% increase in December passenger traffic, partly easing fears about a tough winter for the region's carriers.

Earlier this month, British Airways reported a strong gain in first-class and business-class travel in December.

Shares in BAA, which draws its income from airline take-off and landing fees, car parks, retail rent and duty-free shops, rose 4½p to 579½p in early trading.

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