City Airport's profits fly high

Docklands-based London City Airport's after-tax profits flew up 50% to £15. million last year as turnover rose 30% to a record £58.5 million.

However, no dividend was paid, its latest accounts show.

Passenger numbers grew by a quarter to 2.9 million in 2007, and although the airport was operating at close to its limit of 80,000 flights a year, it was granted permission last week for an increase to 120,000.

Its proximity to Canary Wharf and the City make the airport popular with business travellers but has already seen a nosedive in corporate jet movements, which are expected to fall from 15,000 to 14,500 this year.

The decline should be more than offset by the increased number of flights, however, as passenger traffic is forecast to rise to 3.2 million by the end of this year.

Last month, US insurance giant AIG offloaded its 50% stake to begin paying off a £50 billion bailout loan from the US Federal Reserve.