BUDGET carrier Flybe continues to blaze an expansion trail across the skies above the south.

The UK's third largest low-cost airline has repeatedly banged the drum about the economic significance of making Southampton Airport its regional hub, generating inward investment.

Now the company, which is on track for annual profits of £3.1m, is once again putting the money where its mouth is - by unveiling two new domestic destinations.

Flybe has launched a route from Southampton to Newcastle and Manchester as part of its "overall strategy of continued investment and expansion of both its domestic and international route network".

The Manchester service, which will be three outgoing flights daily, starts in October, as does the Newcastle one, with one flight daily.

Flybe, the largest scheduled airline at Southampton, has two competitors on these routes.

British Airways CitiExpress runs flights to Manchester, while Eastern Airways, which took over a number of BA domestic routes in March 2003, has a Newcastle link.

Mike Rutter, Flybe's sales and marketing director, said: "Contrary to competitor strategies of route cutting, Flybe continues to expand within the regions and is committed to bringing convenient flight schedules to your door."

Airport managing director David Cumming said: "Newcastle and Manchester are both very popular routes from Southampton.

"These extra services will provide even more choice and flexibility."

The Flybe factor has proved a genuine business fillip for Southampton Airport, which employs more than 850 people.

Last year the airport handled 1.2m passengers, 54 per cent up on the previous year, making it the leading performer among the seven BAA-owned airports in the UK.

Flybe, which runs 19 destinations from Southampton, says it is due to carry 4.5m passengers across its entire network in 2004/5.

Prices between the three competitor airlines to Manchester and Newcastle vary considerably, subject to dates, time and availability.

Flybe says a one-way flight to Newcastle will cost from £19.