The company which runs Gatwick has blamed a slump in passenger numbers and higher security costs in the wake of September 11 for a massive dive in profits.

Airport operator BAA reported its quarterly profits had dropped six per cent.

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 the US terrorist attacks.

About 150 people have joined the 450 staff already working in security at the South Terminal to help with Customs searches for knives, knitting needles and scissors and other security matters.

Searches are much more rigorous and passengers can find themselves being searched several times on the way to the plane both before and after passing through Customs.

Security chiefs have also launched a campaign to encourage people not to pack sharp objects in their hand luggage, which has led to Customs seizing more than 2,000 objects a day.

BAA chief executive Mike Hodgkinson said changes in the timing of public holidays had contributed to the lower passenger figures.

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.

There were 42,000 passengers flying on Saturday from the South Terminal alone as the traditional summer getaway began.

It was historically one of the busiest weekends of the year for air travel, he said, the first after the beginning of the school holidays.

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

The amount spent by passengers before taking off has continued to increase, with BAA's retailing revenues up 1.6 per cent to £126 million.

And Mr Hodgkinson added that passenger traffic should begin to rise later in the year as the sharp falls seen after September 11 are reversed.

Total turnover across the group, which also includes the Heathrow Express train link, eased one 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.

After adding in one-off costs suffered last year, bottom-line pre-tax profits in the quarter fell just 4.7 per cent, from £150 million to £143 million.

BAA's shares slipped 2p to 464p in early trading.