Luton Airport owner TBI says it has "significant potential"

The company said it believed the site had significant potential as low-cost airlines continue to develop services.

The current £30m expansion is expected to almost double retail and catering space, giving it a capacity for up to 12m passengers a year.

It should be ready in time for the annual peak in usage next July.

Luton currently handles almost seven million passengers a year but is braced for a major rise after Easyjet said it would increase capacity by 25% and Ryanair committed four new aircraft and nine new routes.

Profits soar

The intention to increase investment at Luton is being considered as TBI prepares to buy the 28% stake it does not already own in the airport.

The proposed £78m deal with Alterra, a joint venture between US engineering group Bechtel and Singapore Changi Airport, should be completed early next month.