LONDON City Airport, which is owned by companies controlled by financier Mr Dermot Desmond, handled a record 727,601 passengers last year, an increase of 31 per cent over the 1995 total.

The passenger levels mean it is likely the airport made its first significant trading profit since it was opened in 1987.

Companies controlled by Mr Desmond bought the Docklands airport for £14.5 million in October 1995. They also bought an adjacent plot of land for £9 million. The airport made a loss of £4.2 million in 1994, and a £6.1 million loss in 1993. It has accumulated losses of £70 million.