BAA announces December 2010 and annual traffic results
- BAA group passenger numbers down 10.9% in December 2010.
- Underlying full-year (2010) passenger numbers up 0.6% and 3.4% for BAA and Heathrow respectively.
- Approximate cost to BAA of weather disruption in December is £24m.
December 2010
BAA's UK airports handled 7.2 million passengers in December 2010, a decrease of 10.9% on December 2009.
The drop in passenger traffic is almost entirely due to the disruptive effects of the coldest December since records began in the UK, which affected much of North West Europe and latterly the North Eastern seaboard of the US.
Compared with December 2009, Heathrow’s passenger total fell 9.5%. Without the passenger losses as a result of the snow, it is estimated that underlying performance was broadly flat. At BAA’s other airports, Edinburgh and Southampton experienced the largest percentage declines as a result of the bad weather (18.4% and 22.0% respectively).
Calendar year 2010
For the year as a whole the headline result was a group total of 103.9 million passengers, a drop of 2.8% on 2009.
The year was marked by a series of exceptional events. Apart from severe weather late in the year, there were the effects of two extended periods of BA strikes and the Icelandic volcanic ash cloud.
Taken together these events are estimated to have caused the loss of 3.6 million passengers at BAA’s UK airports. In their absence, it is estimated that instead of an actual drop of 2.8% in passenger volumes there would have been a 0.6% increase.
The details for 2010 are provided below:-
Airport | Actual Result 2010 | Estimated loss | Underlying 2010 | |
|---|---|---|---|---|
(m) | % | (m) | % | |
Heathrow | 65.7 | -0.2 | 2.4 | 3.4 |
Stansted | 18.6 | -7.0 | 0.4 | -4.8 |
Southampton | 1.7 | -3.2 | 0.1 | 1.1 |
Glasgow | 6.5 | -9.6 | 0.2 | -6.0 |
Edinburgh | 8.6 | -5.0 | 0.4 | -0.6 |
Aberdeen | 2.8 | -7.4 | 0.1 | -4.6 |
Total | 103.9 | -2.8 | 3.6 | 0.6 |
Overall the year showed a modest level of underlying recovery at Group level from the recessionary trough of 2009.
Within this picture there was clear evidence that Heathrow, with its greater exposure to faster-growing markets, was on a more rapid path of recovery with all of the months from July to November experiencing record totals.
Business commentary and outlook
All of BAA’s airports were affected by severe weather to some extent in December and the resulting disruption is estimated to have affected profits across the BAA group by approximately £24m.
The approximate financial cost by airport, measured in terms of the reduction in profit, was £19m at Heathrow, £1m at Stansted and £4m across the group's four other UK airports of Aberdeen, Edinburgh, Glasgow and Southampton.
The reduction in profits partly reflects lower revenues, principally in terms of lost aeronautical income driven by reduced passenger traffic.
A significant proportion (approximately 40% at Heathrow) of the reduction in profit resulted from higher operating expenses which, other than the extra costs of operating in unusually severe winter weather, reflected in particular the costs of supporting passengers in the difficult circumstances.
These costs included the provision of significant additional personnel and other resources to assist passengers in our airport terminals as well as the cost of providing hotel accommodation, catering and other care for substantial numbers of stranded passengers.
On December 23rd 2010, BAA chief executive Colin Matthews announced an enquiry to establish the lessons that can be learned from recent events at Heathrow.
The enquiry is chaired by Professor David Begg, a recently-appointed non-executive director of BAA and a respected transport adviser. He will be supported by a panel of international experts and will publish a report in March 2011.
Colin Matthews, chief executive of BAA, said:
“The coldest December on record closed airports around the world but we must carefully examine the snow plan agreed with airlines earlier in the year and strengthen it to protect against such unprecedented weather.
“We are sorry for the flights that had to be cancelled as a result of the snow. The cost of any disruption to BAA's airports is significant and a strong financial incentive for us to continue to make Heathrow more resilient.
“There were many challenges in 2010, ranging from poor weather and security threats through to industrial action and the cloud of volcanic ash.
“But we have continued our £1 billion-a-year investment programme and are encouraged by Heathrow’s underlying positive performance during challenging economic times.
“Heathrow has improved considerably in recent years, and we are determined to put December behind us and win back confidence by improving customer service, upgrading our terminals and doing whatever it takes to improve people's journeys."
BAA traffic summary: December 2010
Terminal passengers (000s) | Month | % change | January to December 2010 | % change |
|---|---|---|---|---|
Heathrow | 4,809.2 | -9.5 | 65,747.2 | -0.2 |
Stansted | 1,218.1 | -10.9 | 18,564.7 | -7.0 |
London area total | 6,027.3 | -9.8 | 84,311.8 | -1.8 |
Southampton | 92.6 | -22.0 | 1,734.4 | -3.2 |
Glasgow | 360.0 | -15.3 | 6,527.8 | -9.6 |
Edinburgh | 473.2 | -18.4 | 8,597.1 | -5.0 |
Aberdeen | 197.3 | -8.3 | 2,777.0 | -7.4 |
Scottish total | 1,030.5 | -15.5 | 17,901.9 | -7.1 |
UK total | 7,150.4 | -10.9 | 103,948.2 | -2.8 |
Naples | 369.1 | 4.2 | 5,548.3 | 4.9 |
Air transport movements | Month | % change | January to December 2010 | % change |
|---|---|---|---|---|
Heathrow | 32,481 | -12.0 | 449,220 | -2.3 |
Stansted | 9,889 | -10.3 | 143,335 | -8.3 |
London area total | 42,370 | -11.6 | 592,555 | -3.8 |
Southampton | 2,248 | -17.8 | 40,371 | -0.5 |
Glasgow | 4,554 | -8.2 | 69,573 | -6.3 |
Edinburgh | 6,186 | -14.7 | 101,337 | -5.3 |
Aberdeen | 6,738 | -6.7 | 90,445 | -6.6 |
Scottish total | 17,478 | -10.1 | 261,355 | -6.1 |
UK total | 62,096 | -11.4 | 894,281 | -4.4 |
Naples | 4,275 | 4.2 | 63,564 | -0.7 |
Cargo (metric tonnes) | Month | % change | January to December 2010 | % change |
|---|---|---|---|---|
Heathrow | 108,913 | -9.4 | 1,473,083 | 15.2 |
Stansted | 16,174 | 1.9 | 202,756 | 10.4 |
London area total | 125,087 | -8.1 | 1,675,839 | 14.6 |
Southampton | 2 | -90.5 | 116 | -44.5 |
Glasgow | 333 | 52.4 | 3,744 | 38.0 |
Edinburgh | 1,393 | -30.9 | 20,709 | -14.0 |
Aberdeen | 405 | 16.3 | 5,128 | 4.2 |
Scottish total | 2,131 | -17.5 | 29,581 | -6.7 |
UK total | 127,220 | -8.3 | 1,705,537 | 14.2 |
Naples | 125 | 9.5 | 1,840 | -7.4 |
Market comparison: UK airports December 2010
Market | BAA total Dec 2009 (000s) | BAA total Dec 2010 (000s) | % change |
|---|---|---|---|
UK & Channel Islands | 1,390.0 | 1,058.1 | -23.9 |
Ireland | 357.7 | 278.1 | -22.2 |
European scheduled | 3,226.7 | 2,937.3 | -9.0 |
European charter* | 77.4 | 72.2 | -6.7 |
North Atlantic | 1,161.3 | 1,074.6 | -7.5 |
Other long haul | 1,808.5 | 1,730.1 | -4.3 |
Total | 8,021.5 | 7,150.4 | -10.9 |
* Includes North African charter
Note: Origins and destinations are classified according to ultimate origin or destination of aircraft in the case of multi-sector flights.
Note: Figures for the market sectors have been rounded. Totals as per traffic summary.
Market comparison: UK airports calendar year 2010
Market | BAA total Jan to Dec 2009 (000s) | BAA total Jan to Dec 2010 (000s) | % change |
|---|---|---|---|
UK & Channel Islands | 19,154.4 | 17,591.8 | -8.2 |
Ireland | 4,727.7 | 4,209.0 | -11.0 |
European scheduled | 44,413.6 | 43,801.7 | -1.4 |
European charter* | 2,225.4 | 2,351.2 | 5.7 |
North Atlantic | 15,359.7 | 15,178.5 | -1.2 |
Other long haul | 21,036.8 | 20,816.1 | -1.0 |
Total | 106,917.6 | 103,948.2 | -2.8 |
* Includes North African charter
Note: Origins and destinations are classified according to ultimate origin or destination of aircraft in the case of multi-sector flights.
Note: Figures for the market sectors have been rounded. Totals as per traffic summary.
Note to editors:
- The financial results for BAA (SP) Limited, the owner of Heathrow and Stansted Airports, will be published on 22nd February 2011 – this will include a 2010 capital investment total.
Further information from:
Heathrow media relations, 020 8745 7224
