UK airports operator BAA has announced it is to shed 700 jobs as part of a cost-cutting drive. The group said the move would result in savings of about £45m a year by 2008. The news came as BAA posted a 9.6% rise in underlying operating profits to £412m for the six months to 30 September, from £376m last year.

BAA, whose airports include Heathrow, Gatwick and Stansted, said it carried 82.3 million passengers during the six month period - up 2.5% on last year.

However, despite the rise in traveller numbers at the group as a whole, passenger levels at the group's three London airports slipped with the group blaming "a difficult summer and a weaker UK economy".

Looking ahead, the company said its cost cuts would "improve customer service and shorten decision chains, leading to more effective management and sustained efficiencies of £45m per annum from 2008/09".

The shake-up would focus on the back office and management areas, resulting "in around 700 fewer jobs", BAA added.