British airports operator BAA today said profits had been dented by falling passenger numbers as soaring fuel prices and the economic downturn rocked the aviation sector.
BAA, which is owned by Spanish infrastructure giant Ferrovial, posted underlying operating profits of £582 million (€664.2m) - more than 18 per cent below last year.
The number of passengers passing through BAA's seven UK airports slid 2.8 per cent to £145.8 million.
Chief executive Colin Matthews, who warned of another "challenging" year ahead, said: "BAA performed strongly in 2008 although its performance was affected by a drop in passengers, which reflects the general economic situation."
BAA owns Heathrow, Stansted and Gatwick airports around London as well as Edinburgh, Aberdeen, Glasgow and Southampton.
But the Competition Commission - whose final report into BAA is due shortly - is likely to require the Spanish-owned airport operator to sell Gatwick and Stansted, as well as Edinburgh airport. BAA is already in talks to sell Gatwick and the deal is expected to be completed in the first half of 2009.
Among the London airports, traffic at Stansted was worst hit by the collapse of airlines such as business class carriers Maxjet and Eos, as well as other budget airlines cutting back services.
Gatwick was similarly affected by the failure of three carriers - XL Leisure, Zoom and Sterling airlines. At Heathrow - BAA's jewel in the crown - growth in long-haul traffic partially offset weaker domestic business with a lesser 1.4 per cent fall in overall passenger numbers to 66.9 million.
The operator was boosted in January by Government support for a third runway at the airport.
Despite a weak economic environment dragging further on passenger numbers this year, BAA is forecasting a better financial performance for 2009. BAA expects retail sales - boosted by the vast shopping space opened with Heathrow's Terminal 5 this year - will remain resilient.
It also said airport charges per passenger were likely to be about 10 per cent higher at its London airports under price increases to reflect the operator's investment in the airports.