A SWITCH from planes to trains by environmentally conscious travellers in the UK helped send profits tumbling at Manchester Airports Group last year, it emerged today.

A fall in domestic passenger numbers was a major factor behind a slump in pre-tax profits from £87.7m to £80.9m in the 12 months to March 31.

Bosses say the green agenda is `gathering pace' and is having a marked effect on the financial performance of the group, the second largest airport operator in the UK.

Disruption following tougher security measures after last August's terror alerts, along with higher utility costs and a reduction in aircraft charges as the number of low-cost flights rose, also took their toll.

Overall passenger numbers actually rose across the group - which comprises Manchester, East Midlands, Bournemouth and Humberside Airports - from 27.6m to 28.6m. Revenues were flat at £385.5m.

The dividend to the group's owners, the 10 Greater Manchester councils, is pegged at £25m.

Services between Manchester and London were the hardest hit within the domestic market. Manchester Airport's overall revenues slipped 4.2 per cent, from £289.9m to £277.6m, and profits dived 14.4 per cent from £64.7m to £55.4m, even though overall passenger figures nudged up by 100,000 to 22.2m.

Directors' bonuses were scrapped as a result of the group's performance. Chief executive Geoff Muirhead's package fell from £413,000 to £356,000.

In its annual report, the group said growth in low-cost services, which command lower charges, was offset by a fall in domestic and short-haul charter routes.

The long-haul charter grew steadily, with new services to destinations such as Cape Town, the Sri Lankan capital, Colombo, and Tripoli in Libya.

Chairman Alan Jones admitted the group, which employs more than 2,800 people directly, had experienced `another extremely challenging year' in the face of external factors.

The August security alerts led to a significant fall in retail business, as passengers were prevented from carrying liquids on board. A doubling of air passenger duty was another blow.

Mr Jones added: "Given all of the recent negative impacts on the perception around air travel, MAG is significantly stepping up its efforts to improve its customer service proposition."

It is investing heavily to enhance the passenger experience, including measures in the terminals, car parks and retail areas.

On the environment, he said the group had reduced its carbon emissions by using renewable sources of electricity and water, and through measures such as turning off travelators at night.

Group finance director Richard Pike acknowledged that there was a `hassle factor' to using UK airports. However, he said he expects to see growth this year as the group looks to curb costs and boost its income. Tweet