Edinburgh Airport defies Credit Crunch

Thursday 20th November 2008

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Edinburgh Airport has seen a growth in Revenues despite the recent economic downturn. Airport operator BAA confirmed this saying that income had increased by 2% in the nine months up to September 30, while overall revenues increased by 4%.

Discounting the three London airports, revenues at BAA have increased by 15% to £1.9 billion. Earnings before tax and depreciation fell by 1% to £822 million.

The global financial situation has impacted on passenger traffic with numbers being reduced to 117.9 million, a 1.4% decline.

Colin Mathews, chief executive at BAA, said: "BAA has delivered a resilient performance with results in line with forecasts."

"With trading conditions expected to remain challenging in the coming months, we are maintaining our sharp focus on operational improvement and a substantial programme of capital investment, which will lead to better passenger service standards and lower costs."

Competition Commission report findings have recommended that BAA sell one of either Glasgow or Edinburgh Airport as well as two of the three London Airports under its control.

BAA declared their intention of selling Gatwick but retaining ownership of both Glasgow and Edinburgh Airports.

The airport operator also dismisses concern over decline in passenger numbers saying: "Traffic levels have softened in recent months as the global economic outlook has deteriorated. However, experience suggests that traffic will return to levels at or above recent figures, reflecting the major economic and demographic drivers of growth in the aviation industry."

Over the last 40 years, there have been four periods when annual rolling passenger traffic figures have declined. Negative growth has lasted no more than 12 months with renewed growth normally well established within 12 months of the trough in performance."