An increase in passenger numbers at UK airports has seen operator BAA cut losses over the first three quarters of financial 2011.
BAA reported a pre-tax loss of £147 million for the period, compared to a loss of £193 million 2010.
However, the 2010 results were hit by the volcanic ash cloud and a strike among British Airways cabin crew.
BAA increased the number of passengers it served at its UK airport – including London Heathrow, London Stansted and Glasgow and Edinburgh Airports in Scotland - by 4.3 per cent.
Earlier this month, BAA announced the sale of Edinburgh Airport, which is due to be completed by summer 2012.
Commenting on the results the BAA chief executive, Colin Matthews, said: “Our strong financial performance was driven by underlying growth in passenger number, higher revenue per passenger, continued cost control and no recurrence of the volcanic ash and strike disruptions of 2010.”
Spanish infrastructure firm Ferrovial, the largest shareholder in BAA, recently sold a 5.9 per cent stake in the company in order to reduce its exposure to debt.
US infrastructure specialists Alinda Capital Partners paid £280 million for the stake.