Revenue and passenger numbers also down
BAA reported an 18.4% drop in its adjusted operating profit for 2008 to £582m, compared with £713m in 2007.
The company, which runs seven airports in the UK, also reported a drop of 2.7% in passenger numbers, down from 155.7m in 2007 to 151.4m last year.
Passengers at BAA's three London airports, Heathrow, Gatwick and Stansted fell by 2.6% from 126.8m in 2007 to 123.4m in 2008.
BAA said that its adjusted revenue for 2008 rose by 14.3% from £2,266m in 2007 to £2,590m last year.
It said that while it expected a challenging year in 2009, its "underlying profits and cash flow" were forecast to increase.
It said the planned sale of Gatwick Airport was also on schedule.
The UK Competition Commission in a provisional report last August said it might require BAA to sell tow of its London airports and one of its Scottish ones.
Bids for Gatwick are due in by the end of next month.
Colin Matthews, BAA's ceo, said: "BAA performed strongly in 2008 although its performance was affected by a drop in passengers, which reflects the general economic situation.
"2009 will be a challenging year but BAA is resourced and structured to meet those challenges and continue to invest in the capital programme that is vital for the future of the business, its passengers and our airline customers."
www.baa.com