The figures come as the airline posted a profit of almost $25 million in the 2007-08 financial year.

Regional Express network strategy general manager Warrick Lodge said the Albury figures had been strong.

“On the Albury to Melbourne route we’ve seen solid growth, with a 10 per cent increase in passenger numbers on the previous financial year,” Mr Lodge said.

“From 2006 to 2007 we had 36,000 passengers on that route, which rose to 40,000 in the 2007-08 period.”

Mr Lodge said the result was especially pleasing given that the same figure for 2003-04 had been less than 20,000.

The airline had only established its Melbourne to Albury route in the year before, from 2002-03.

Mr Lodge said there had been less movement on the Albury to Sydney flights, with passenger levels of 64,000 virtually the same as in the previous financial year.

But the airline considered that a success given the entrance of Virgin Blue into the market in February this year.

“It was a major objective of ours to try to maintain passenger levels on the Sydney route, and we have,” Mr Lodge said.

The airline’s group after-tax profit rose 3 per cent to $24.3 million in the past financial year.

Its after tax profit for the fourth quarter was a total of $8.3 million.

This was an increase of 31.7 per cent.