Teesside International Airport has made a profit for the ninth year in a row.

The airport's annual report reveals pre-tax profits of £333,685 in the year to March, compared to £209,161 in the previous year. Turnover increased to £8.427m

Passenger numbers were at an all-time high of 756,606.

During the year, the airport maintained its investment in improvements and new facilities, spending more than £800,000 on a wide range of projects, including a refurbishment programme for the departure lounge areas.

Chairman of the airport board, Councillor Ken Hall, said: "Once again the report reflects the rapidly changing nature of the airport industry.

"For example, while we had to deal with the financial impact of changes in bmi British Midland Heathrow service, the continued growth in our holiday charter business - up almost 25 per cent - coupled with an increase in commercial income, enabled us to report significantly increased profits."

He said: "Of course, the report covers the period to the end of March and a great deal changed since then in the air travel industry, especially since the atrocities of September 11.

"However, we are entering a period of stabilisation, to ensure that we lay firm foundations on which to build a sustainable business for the future, and in recent months we have had a number of positive developments.

"These have included the finalising of a £6m partnership with regional development agency One NorthEast and the recently-announced agreement with bmi that will safeguard the Heathrow link for the next three years."

* The most comprehensive report ever published on the property market and its relationship with airports has revealed outstanding growth potential in Teesside and Newcastle airports.

The report, published by international property consultants King Sturge, claims Newcastle and Teesside International Airports are of strategic importance to the future development and strength of the North-East.

Jonathan Sykes, partner in charge of King Sturge's offices in Newcastle, said: "Teesside International Airport is working in conjunction with One NorthEast and Tees Valley Partnership to promote the development of the airport and surrounding areas.

"The southside development, a 32 hectare site to the south of the runway, has been identified as a key development opportunity."

Mr Sykes added: "The clear message is that nationally airports are good for commercial property, attracting premium values around 20 per cent above average and offer greater potential for future growth."