Ash cloud disruption 'cost BAA £28m'

30/04/2010

The closure of Heathrow and Stansted airports as a result of the volcanic ash cloud cost operator BAA a total of £28 million, the company has revealed.

Announcing its fiscal results for the first quarter of 2010, BAA reported an overall pre-tax loss of £195.5 million - down from the £316.2 million loss a year earlier.

The company said both Heathrow and Stansted had delivered a "resilient" financial performance during the period, despite extreme winter weather, tighter security and airline strikes.

However, BAA's chief executive officer Colin Matthews said the chaos caused by the volcanic ash cloud is likely to have a significant impact on its annual performance.

"We currently estimate that the closure of Heathrow and Stansted due to volcanic ash will have a total impact on 2010 adjusted EBITDA of £28 million," he stated.

The ash plume that erupted from the Eyjafjallajokull volcano in Iceland brought flights across Europe to a standstill earlier this month, leaving thousands of passengers stranded.

Mr Matthews said the airline industry as a whole will continue to encounter "significant financial challenges" in 2010, adding that BAA's priorities would lie in improving customer service and efficiency.