TBI, the group that operates Luton, Belfast International and Cardiff airports, has seen profits and sales slip, partly because of the expansion of low-cost airlines.

While the firm said it was well positioned to take advantage of the growth of budget travel, it suffered in the short-term from more established airlines cutting back their services as they battle against the no-frills operators.

British Airways has withdrawn from Belfast International and bmi British Midland has also cut its services from the airport.

The number of chartered flights from TBI's airports has also fallen.

Pre-tax profits before one-off costs dropped to �18m for the six months to the end of September, down from �23.4m last year, while revenue fell 7.4% to �99.7m.

But TBI said the growth of the low-cost carriers had helped its airports - Easyjet is based at Luton - and offered the prospect of growing revenue and profits in the long run.

Last year, TBI rejected and later attempted to embrace a takeover offer by Vinci.

But the French firm withdrew its offer after the 11 September attacks, which hit the aviation industry hard.