| Journal: TWUK | Section: |
| Title: | Issue Date: 12/06/00 |
| Author: | Page Number: 26 |
| Copyright: Other |
BAA’s Heathrow Express passes first profit mark
BAA’s Heathrow Express made its first profit in the year to March 31.The two-year-old service showed an operating profit of £4.1m in its first full year of financial results since being launched in June 1998.
In the nine months to March 31 last year, Heathrow Express lost £1.8m.
In 1999/2000, the train link to central London carried 4.4m passengers. The performance of Heathrow Express gave BAA a high point in an otherwise disappointing set of annual results.
To March 31, the airports’ operator’s pre-tax profits were down 26.9% to £377m compared with £516 in 1998/99. Exceptional costs were £117m.
BAA blamed the loss of intra-European duty-free sales at airports including Heathrow, Gatwick and Stansted for the drop in profits.
Chief executive Mike Hodgkinson agreed the group had suffered a setback from duty-free losses but pointed to new areas where BAA can improve profits.
“A strategic review has also revealed opportunities ine-business, both in the supply chain and in providing an integrated service for consumers.”
Terry Morgan, a former Stansted managing director, has been appointed managing director of BAA International to spearhead a global drive for business. He was previously running Melbourne Airport for BAA.