HOLIDAYMAKERS fearing possible terrorist attacks are not booking holidays abroad - causing passenger levels at Manchester Airport to fall, the BEN can reveal today.

Bosses say decreasing custom has resulted in financial loss and caused a number of air operators to withdraw their services from the award-winning airport.

But managing director of Manchester Airport John Spooner said he was "very hopeful" that both holiday makers and chartered flights would return to normal.

He predicted uncertain times ahead for every offshoot of the airline industry and warned: "It is going to be some time before our customers, airlines, tour operators, travel agencies and cargo companies are in a position to plan their business activities in the light of the terrorist attacks."

Manchester Airport is home to around 100 airlines serving more than 180 destinations worldwide. Manchester Airport plc reported operating profits of over £50m during the last financial year.