Passenger numbers increased for the first time in a number of years, the annual general meeting of Kerry Airport heard yesterday. Having added a link to Frankfurt-Hahn with Ryanair, Kerry is to continue to develop direct routes to the Continent, linking the county with large tourist markets.

Negotiations are in train with carriers including Aer Lingus to develop routes to Dusseldorf, Amsterdam, Paris, Brussels and Palma in Majorca. There are also negotiations to develop routes to Manchester and Birmingham, alongside the existing daily London-Stansted flights.

Mr Peter Bellew, marketing manager, said Kerry Airport had in its favour the fact it was a highly efficient quick turn-around destination and this appealed to airlines as well as to passengers.

Passenger numbers grew by 25 per cent on the Kerry-Dublin route and new flights had been added, Mr Denis Cregan, chairman of the board, said.

Differences between Ryanair and Kerry Airport over an airport development levy on passengers had been resolved and the new 10-year agreement on the London Stansted route with Ryanair would see a twice-daily service in the summer and a once-daily service in the winter, he said.

"It goes without saying that secure and reasonable long-term access to the UK mainland, particularly to the London area, at a realistic cost is vital to our economy," Mr Cregan said.

In terms of world events, 2002 was "somewhat more benign" than 2001.

It was characterised by a number of new regional airlines positioning products in the low- fares sector and some more established operators adopting a similar business model.

Ms Kathleen O'Regan-Sheppard, a director of the airport, said the addition of Frankfurt-Hahn in April had been a huge boost for tourism in the area.