Losses at airport operator BAA narrowed over the first six months of financial 2011 as passenger numbers increased.

BAA – which owns London Heathrow Airport – lost £249 million in the six months to June 30th, some 11 per cent less than the £280 million lost during the same period of 2010.

Revenue increased 12.1 per cent to £1.1 billion.

This was largely driven by increases in passenger traffic, which was up 7.1 per cent to 41.4 million - with 9.1 per cent growth at Heathrow leading the way.

Colin Matthews, chief executive officer of BAA, said: “This is a strong financial performance that reflects record passenger numbers, increased revenue per passenger and good cost control.

“We remain focused on customer service and Heathrow has achieved some of its best ever levels of flight punctuality and baggage delivery.

BAA is investing £1 billion in new passenger facilities at Heathrow during 2011 and the airport’s newest, Terminal 5C, opened in June, with the aim of improving passengers’ experience.

The Competition Commission finally concluded earlier this month BAA would be forced to sell Stansted Airport as well as either Glasgow Airport or Edinburgh Airport in Scotland.