By Karamjit Kaur, Aviation Correspondent

DESPITE a record number of passengers and flights, operating profits at Changi Airport dipped almost 14 per cent for the financial year ended March 2008, their second consecutive annual drop.

Official figures released yesterday show that while revenues rose, higher expenditure - partly from the opening of Terminal 3 in January - had cut into profits.

They reached $317 million for the 12 months ended March. The previous year, profits dropped about 8 per cent to $368 million.

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