PASSENGER numbers at Teesside International Airport have reached record levels, despite a series of recent setbacks.

The annual report for the year to the end of March this year shows that numbers have increased by 73 per cent over the past six years.

Statistics have revealed that passenger numbers topped 740,000, up on 427,000 in 1994/95.

Turnover was also another record at £8,597,421. And for the eighth year in a row the airport has shown a profit, with this year's figure of £209,161.

The report also highlights the airport's improvements and new facilities.

During the financial year, the airport spent £1.397m on 38 capital projects, including finishing the apron extension, a new baggage conveyor system and an extension to the main car park.

The news comes after a year of turmoil for the airport.

Earlier this year, Gill Airways announced it was withdrawing its Teesside to Belfast service.

British Midland cut back flights to London, then threatened to withdraw them altogether.

And in August, general manager Bob Goldfield, and head of marketing Kate O'Hara, resigned, closely followed by Councillor Vilma Collins, chairwoman of the board.

The new chairman, Councillor Ken Hall, said: "The annual report reflects the rapidly changing nature of the airport industry.

"For example, we had to cope with the loss of duty free revenue and the impact of the financial problems affecting Gill Airways, yet we still managed to increase our turnover.

"Profit was affected by a number of factors, including the Gill Airways situation and loan charges for a new apron extension.

"But nevertheless, this was the 13th year when we have not sought any direct subsidy from our local authority shareholders.