British aircraft maintenance company BBA Aviation said first-quarter trading met expectations and market conditions in North America appeared to be stabilizing, lifting its shares on Wednesday.

"In the absence of a further impact from the slowdown in the economic environment, we continue to expect to make good overall progress in 2008," BBA said in a statement.

"The key word in the statement is 'stabilizing'. The market does not seem to be worsening," UBS analysts said in a note.

"So long as (revenue) remains at these levels, our forecasts should not change but there is a risk the aftermarket business feels the pinch later in the year as maintenance is delayed," said UBS.

BBA said revenue in the three months to end-March rose 12 percent, of which 7 points was due to higher fuel prices.

Sales, excluding acquisitions and disposals, at constant exchange rates and fuel prices were flat year-on-year, with growth in aftermarket services and systems offset by a 4 percent fall at its Signature flight support business.

Signature's first-quarter revenues, boosted by acquisitions, rose 15 percent but were 3 percent lower on a like-for-like basis at constant exchange rates due to "the slower trading environment in North America".

In February, BBA said it was buying Hawker Beechcraft Services' Line Service Operations for USD$128.5 million in cash, to acquire another seven US bases for Signature.

Late in 2006, BBA spun off its Fiberweb non-woven materials business to focus on flight support and aftermarket services and systems.