Owners and operators of Southampton International Airport BAA has shaken off the hangover caused by the abolition of duty free, with a five per cent jump in profits.

The group, which has emerged from an "extremely challenging'' 15-month period since duty- free within the European Union was axed, said its last half-year figures showed a "return to growth''.

The upbeat figures come exactly a year after the group saw its shares plunge when it warned the abolition of duty free had hit it harder than anticipated.

However, yesterday figures were flying in the right direction, with pre-tax profits, stripping out one-off costs, rising five per cent to £322 million while turnover rose to £1.18 billion, from £1.1 billion.

Chief executive Mike Hodgkinson said: "These results clearly demonstrate a return to growth after an extremely challenging 15 months post the abolition of intra-EU duty-free sales.

"We are addressing the problems we faced last October.''

The group, which operates Heathrow, Gatwick, Stansted, Southampton, Aberdeen, Edinburgh and Glasgow airports as well as Southampton, is now concentrating on its core airports business.

It said it had seen strong passenger traffic growth through its UK airports - rising more than six per cent nationally in the half-year.

Southampton is now the second fastest growing airport in the BAA stable with passenger figures increasing at around 13 per cent annually.