Teesside Airport has shown signs that the airline industry is starting to recover after last year's terrorist attacks on the US.

With the airport about to begin another busy summer holiday season, it has already announced an increase in the flights to popular holiday destinations from next year.

At the same time, bmi British Midland has announced a major overhaul of its pricing structure on flights to and from Teesside Airport and London Heath-row.

Summer next year will see the introduction of a new Wednesday flight to Paphos, in Cyprus, with seats available through Airtours and Thomson, while Unijet, Sunquest, First Choice and Thomson plan to include a Monday flight to Dalaman, in Turkey, in their programmes.

Richard Whitehouse, commercial manager at the airport, said: "After the difficulties which the entire industry faced in the wake of the September 11 tragedy, it is very encouraging to see business now starting to recover and tour operators are showing confidence in the potential for continuing growth at Teesside

"These new flights are proof that tour operators recognise our popularity with North-East holidaymakers.

"I am sure that our customers will be delighted that they will have even greater choice of destinations from Teesside next summer, especially since Cyprus and Turkey are very popular with North-East holidaymakers."

Bmi British Midland is introducing economy fares of £34 each way when booking a return journey from Teesside to Heathrow.

Its chief executive, Austin Reed, said the changes are in line with the needs of the business and leisure traveller wanting access to a wide and flexible range of fares.

He added: "bmi, which has a history of being competitive, remains the only airline from London Heathrow to offer both business and economy cabins, and we have applied a new pricing structure to each cabin.

"Business passengers will continue to benefit from all the extras, including priority check-in, access to exclusive lounges and membership of our frequent flyer programme, Diamond Club. Leisure travellers will also now benefit from incredibly low prices on same day returns."

Mr Whitehouse added: "This news from bmi British Midland is excellent for our passengers right across the region.

"This will benefit both business and leisure travellers using bmi British Midland flights from the airport.