The company which runs Gatwick today revealed a dive in profits.

Airport operator BAA blamed a slump in passenger numbers and higher security costs in the wake of September 11.

The company reported its quarterly profits had dropped six per cent and passenger numbers were down in June by almost nine per cent on last year, at just under three million.

An extra £5 million has also been spent on security following terrorist attacks in the Unites States. About 150 people have joined the 450 staff already working in security at the South Terminal to help Customs searches for knives, knitting needles and scissors and other security matters.

The group said 32 million passengers passed through its airports in the three months to June 30, down 1.7 per cent on a year ago.

BAA chief executive Mr Hodgkinson said the group remained "well placed to ride out the current difficult period" in the aviation industry.

The amount spent by passengers at the airport has continued to increase with BAA's retailing revenues up 1.6 per cent to £126 million.

Mr Hodgkinson said passenger traffic should begin to rise later in the year as the sharp falls seen after September 11 were reversed.

Total turnover across the group, which also includes the Heathrow Express train link, eased 1 per cent to £477 million in the quarter.

BAA plans to spend £8.1 billion on a major 10-year expansion programme, that includes the construction of Heathrow's Terminal 5.

Earlier this month, the Competition Commission rejected BAA's plea to be allowed to increase landing charges to help pay for the work.

Mr Hodgkinson said the new pricing regime determined by the regulator may not now be completed until January next year.