TBI, the group that operates Cardiff, Luton, and Belfast International airports, has reported a 26% rise in profits.

The increased earnings come despite the turmoil surrounding the airline sector since the 11 September terrorist attacks in the United States.

2001 was a watershed for the aviation industry, and the beginning of a different dynamic in air travel

TBI Chief Executive Keith Brooks

The company - owned by Welsh entrepreneur Stan Thomas - said it had withstood "substantial market pressures" to post the improved results with cheap flights boosting business.

Passenger numbers at TBI's UK airports rose 7% to nearly 12 million people during the 12 months to 31 March.

It said business at Cardiff held up well despite four operators cutting capacity, with a recent report to the Welsh Assembly criticising the airport for failing to fulfil its potential.

The company's success is testimony to the ability of low-cost carriers such as Luton-based Easyjet to continue to attract new customers.

Recent figures from the Civil Aviation Authority show the number of passengers passing through Heathrow fell by 6% last year, while Gatwick lost 3% of its business.

"2001 was a watershed for the aviation industry, and the beginning of a different dynamic in air travel," said TBI's chief executive Keith Brooks.

"I see the coming year as a period of relative consolidation followed by a very bright and encouraging future in the years beyond," he said.

Ambitious aims

Mr Brooks added that the company would be interested in expanding its operations - even buying Heathrow or Gatwick airports if they became available.

"If either of those airports do come up we would be a natural buyer.

"The same goes for any of the airports around the UK - if one came up, we would be very interested in buying it."

Cardiff airport handles 1.5m passengers a year

TBI's pre-tax profits rose to �186m from �139m the previous year.

Shareholders will receive a total dividend of 2.3p per share, the same as last year's payout.

The firm is owned by Welsh entrepreneur Stan Thomas, who founded the company with the proceeds of a pie-making business he sold.

TBI also owns or operates airports in the US, Canada, Sweden and Bolivia.

In 2001 the company had to fight off a hostile takeover bid from French construction group Vinci, which still holds a 14.9% stake in TBI.

In January, a report to the Welsh Assembly criticised Cardiff International Airport, saying it needed to improve transport links to shake off its image as a base only for holiday charter flights.

But in March, it was reported that a major US airline was considering starting direct flights between Cardiff and New York.