BAA earnings set to fly higher

The airports operator BAA raised its full year earnings forecast yesterday on the back of higher passenger numbers at Heathrow. The company, owned by Spain's Ferrovial, said it now expected adjusted earnings before interest, tax, depreciation and amortisation to exceed the recent forecast of £972m, with recent strength expected to continue in 2011.

Passenger traffic is forecast to climb by 3.7 per cent to 88 million, driven by strong performance at London's Heathrow airport, where annual numbers are expected to rise to around the 70 million passengers mark for the first time in its history.

BAA, which also owns Stansted airport, said it expected full year revenues to strengthen by nearly 11 per cent to £2.3bn.