BBA Aviation, the FTSE 250 aviation and support services provider, has admitted that it has experienced 'muted' activity in the first quarter and expects this not to change for the next few months.
Group revenue increased by just 2% in the three months to March 31st, but were down 1% after adjusted for fuel prices. In 2011 as a whole, group revenue increased by 17% to £2,136.7m.
BBA's Flight Support division saw revenue fall by 8% (fuel-adjusted) partly due to the exceptionally warm winter in North America which held back de-icing revenue. Business and general aviation (B&GA) flying hours and commercials movements were also slightly down against strong comparators the year before. The Signature unit continued to outperform tis market, the group said.
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Meanwhile, revenues in the Aftermarket Services and Systems division jumped by 15% due to solid demand for engine overhaul services and legacy products together with a strong contribution from the GE fuel measurement business.
"B&GA and commercial movements in the first quarter in both North America and Europe have been muted. We anticipate this continuing for the remainder of the first half, consistent with our view that the uncertain economic climate will result in low and somewhat volatile growth in our major markets in 2012," said Chief Executive Simon Pryce.
Shares were down 1.36% at 195.2p in early trading on Tuesday.
BC
