Passenger numbers are still dropping says BAA

There is no sign yet of a recovery in the airline industry, latest figures show.

BAA, whose airports handle the vast majority of UK air passengers, said today the number of people going through its terminals fell 2.6% last month while the number of flights dived by 5%.

The biggest slump, a fall of 12% year on year, was at Stansted, London's third airport, which has created outrage in Essex and Hertfordshire over plans to expand capacity by building a second runway.

At Heathrow, where British Airways has been leading a campaign to build a third runway, passenger numbers continue to fall, down 0.3% in September and off 2.6% over the past 12 months at 65 million.

"Conditions remain challenging for the industry," said BAA chief executive Colin Matthews.

Up-for-sale Gatwick is still losing passengers as well, off 0.5% in September, though that is better than of late. Over the past 12 months Gatwick passenger numbers have fallen 8.4% to 32 million. Matthews said the outlook for Gatwick has improved because of growth in domestic and European scheduled services.

Reports from Madrid are suggesting BAA's Spanish owner Ferrovial may be close to a sale of Gatwick. The Credit Suisse and General Electric consortium is said to have made a 1.8 billion (£1.65 billion) bid.