Gatwick Airport is making a gradual recovery from the devastating slump which followed the September 11 terrorist attacks on America.

Managing director Roger Cato said the impact on Gatwick had been particularly severe because it had more services to and from America than any other European airport.

In his first report to Gatwick Airport Consultative Committee since taking over from Janis Kong, Mr Cato said: "The impact of September 11 cannot be underestimated.

"It has not only affected out business partners on the airport and their staff but it has also impacted upon suppliers and businesses across the surrounding area."

He said services to the USA were showing signs of gradual recovery and bookings to some destinations, such as the Canaries and the Caribbean, were now very strong.

December figures showed a fall of 16.4 per cent compared with the same month last year, but this was an improvement on the 19.8 per cent fall in November.

Mr Cato said Gatwick was boosted by a very strong Christmas period - more than 1.7 million people travelled through the airport.

He said the biggest challenge was to build customer confidence.

EasyJet has announced 14 more daily flights from Gatwick, starting on February 12, bringing its total to 22 a day.

Established airlines such as Britannia, Airtours, British European, GB Airways, Alitalia and Emirates were also increasing flights this summer and adding new routes.

Mr Cato said they were waiting for the results of the British Airways' strategy review, due at the end of next month, to find out what it would mean for Gatwick.