BBA Aviation profit falls on lower de-icing business

The company, which provides refuelling, ground handling, engine repairing and other services to aviation companies, said its underlying pretax profit fell to $71.7 million for the six months ended June 30, from $84.6 million a year earlier.

“Consistent with the subdued macroeconomic backdrop, we do not now anticipate any material improvement in markets in the second half,” said Chief Executive Simon Pryce.

BBA Aviation said revenue grew 3 percent to $1.09 billion.

Revenue from its flight support business that makes up about 61 percent of the company’s overall revenue, fell 4 percent to $668.3 million mainly due to lower de-icing revenue. De-icing is the removal of snow, ice or frost that builds up on an aircraft’s body.

BBA Aviation raised its interim dividend payment by 5 percent to 4.20 cents.

The company also said it bought PLH Aviation Services and Dryden Air Services for C$27 million ($27.01 million), which builds on its commercial services operation and provides the company access to the Canadian market.

BBA Aviation shares closed at 183.3 pence on the London Stock Exchange on Monday.