UK airport operator BAA has reported an 18.4 per cent fall in profits to £582 million in 2008.

The cost of fuel was one reason attributed to the fall, as was the reduction in passenger traffic, seen as a reaction to the global financial crisis.

In its 2008 financial report, BAA also announced its total passenger traffic for January 2009, which stood at 9.7 million, was down 6.8 per cent compared to last year.

Colin Matthews, chief executive of BAA, said: “BAA performed strongly in 2008 although its performance was affected by a drop in passengers, which reflects the general economic situation.

“2009 will be a challenging year but BAA is resourced and structured to meet those challenges and continue to invest in the capital programme that is vital for the future of the business, its passengers and our airline customers.”

Gatwick’s passenger traffic was significantly affected by the collapse of three carriers last year; XL Airways, Zoom Airlines and Sterling Airlines.

In February of this year, BAA said passenger traffic versus 2008 would be impacted by both weather disruption earlier in the month and the fact that February 2008 contained 29 days.

The company, which is owned by Spain’s Grupo Ferrovial, said it was on track to sell Gatwick and Stansted following the Competition Commission’s report last December, which said BAA had to sell three of its seven UK airports.

The report also highlighted there was a 23.3 per cent increase in staff costs to £445 million in 2008, which was concentrated primarily at Heathrow, and in part due to the addition of Terminal Five.