Passenger numbers at BAA’s airports have declined by 10%.

BAA, owner of London’s Gatwick, Stansted and Heathrow airports, has reported a 10% fall in passenger numbers for the first quarter of 2009 along with a pre-tax loss of more than £316 million, while its revenues increased 15%.

Gatwick and Stansted airports felt the drop in passenger numbers the most, both down almost 15%, while Heathrow experienced a 6% drop.

The launch of Terminal 5 was reported to have contributed to BAA’s financial loss, while the fall in numbers has been partially attributed to February’s unprecedented weather, which brought heavy snow to many regions, coupled with a late Easter and one less day compared with 2008’s leap year.

Colin Matthews, Chief Executive of BAA, said: “Today’s results were delivered in the most difficult economic circumstances, but are in line with our expectations. Although overall traffic trends weakened due to the economic downturn, Heathrow continues to demonstrate resilience, benefiting from its position as a major global hub airport for long-haul services. The rest of the year will be difficult and will present more challenges but our focus remains on raising service standards and maximising efficiency.”

BAA stated in its financial report that it is reviewing “a number of bids” relating to the sale of Gatwick airport, one of the recommendations outlined by the Competition Commission along with the disposal of Stansted airport. BAA will announce the outcome of its review in the coming weeks.

The airport owner has also made progress on the world’s largest integrated baggage system. A 1.8km-long tunnel is being built underneath Heathrow airport to “provide a vital link between all of the airport’s terminals” and, by 2012, will enable the airport to handle 110 million bags every year – at a cost of £260m.

Work on the tunnel started in February and is expected to be complete by July 2009. Once all the systems are in place, passengers’ bags will travel underground using an automated system made up of carts, which will travel on rails at speeds of up to 800 metres a minute.

BAA has produced a video to show the current journey a passenger’s bags may take: http://www.youtube.com/watch?v=6dkPd7zUsv0