THE region's busiest airport has seen its operating profits soar from £1.2m to nearly £12m in only two years.

A cost-cutting restructuring programme at Newcastle International Airport has also accounted for a rise in revenue from £39.4m in 2002 to £43.9m last year.

Finance director Lars Friis said the trend was expected to continue next year.

Millions of pounds have been spent on new technology at the airport. Mr Friis said a 40 per cent reduction in the airport's core staff has accounted for the huge increase in profits. A change in the management team, including the appointment of a new chief executive and commercial director, were followed by a financial turnaround in 2002.

That year, the number of people working for the airport's core departments fell from more than 500 to about 330.

"The cost side of the business went from being the worst in class to the best in class," said Mr Friis.

"Before 2002, the airport wasn't run in a cost-effective manner and we needed to look into taking a lot of the unnecessary costs out of the business. We reduced the number of core jobs by 40 per cent, offering the right package to those leaving the company. It was a difficult decision, but all redundancies were voluntary."

Mr Friis said new technology and equipment had improved efficiency.

"We have invested millions over the past few years to ensure we have the necessary IT infrastructure to manage the business," he said. "We have also put money into new fire vehicles that are much more efficient and require fewer people to operate them.

"We have installed information points in the airport, like those found in the Gateshead MetroCentre, so that customers can find their way around. Before there were more staff in the terminal doing these jobs, but they are now not required.

"So we have seen the business grow by using new technologies, both in the terminal and behind the scenes in the different departments."

Mr Friis said he was keen to further develop and expand the airport as a business, as well as attract more airlines and offer additional destinations.