Losses at BAA's three London airports - Heathrow, Gatwick and Stansted - soared by more than 300 per cent during the six months ending 30 June 2009, compared with the same period last year.

The Spanish-owned company attributed the heavy losses to exceptional items brought about by a larger pension fund deficit and an accelerated decrease in the value of terminal buildings at Heathrow Airport due to be replaced by the new Terminal 2.

A 7.4 per cent decline in passenger numbers has also hit BAA, but the company has also reported a 12.8 per cent increase in revenue, to more than £1.1bn, during the first half of the year, while the net retail income per passenger has also climbed by 7.3 per cent to £4.72.

Colin Matthews, BAA chief executive, said: "BAA's underlying financial performance remains in line with our expectations. Heathrow continues to show its resilience, but trading conditions for the industry remain difficult and we remain focused on improving service standards and delivering a more efficient operation."

BAA also revealed that it is continuing with negotiations over the disposal of Gatwick Airport, although the company insisted that the sale will not be required to repay its debt maturities in 2010. Earlier this year, the Competition Commission ordered the company to sell Gatwick, along with Stansted and either Edinburgh or Glasgow in Scotland.

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