AIRPORT operator BAA yesterday announced it is to axe about 700 jobs as part of plans to save £45m a year.

BAA said back office and management roles would be removed at Heathrow, Gatwick and Stansted - but it insisted there would be no cuts in frontline security staff.

Details emerged as BAA posted improved results for the six months to September 30, despite the impact of wildcat strikes at Heathrow and the London bombings.

BAA said it also overcame the impact of a slowing UK economy on consumer spending and travel plans to report a 9.6 per cent increase in underlying operating profits to £412m.

Retail sales at its seven UK airports including Gatwick and Stansted rose 3.8 per cent to £324m in the first half - better than many high street chains, which have suffered from a sharp fall in footfall.

Combined with a 2.5 per cent rise in the number of passengers and higher landing fees, this helped revenues to rise by 6.4 per cent to £1.17bn.

BAA refused to rule out compulsory redundancies and said the job losses were vital to counter a string of threats to its business.