BAA blames security costs for loses

Airports operator BAA today counted the cost of tighter security measures and money spent on the troubled launch of Heathrow’…

Airports operator BAA today counted the cost of tighter security measures and money spent on the troubled launch of Heathrow’s Terminal 5 as it reported a £51 million operating loss for the first three months of the year.

BAA - majority owned by Spanish infrastructure firm Ferrovial - blamed the plummeting earnings, which fell from £107 million in profits last year, on its efforts to step up security and maintenance at UK airports.

The group also paid £24 million in the first quarter on getting T5 up and running.

Today's figures revealed net debt of £7.4 billion, up 6.7 per cent, as concerns mount over its level of borrowings. BAA said earlier this month it was raising £400 million from shareholders as worries surfaced over its plans to refinance debts.

PA