Most businesses want airports to be expanded and are willing to see fares rise to help pay for the environmental impact of air travel, according to a new report.

A survey of 500 company directors showed that two out of three support expansion, warning that business would otherwise be hit.

The study of Institute of Directors (IOD) members also showed that a similar number believed air fares should be higher to cover environmental costs.

Many of those questioned said fares should increase by £6.50 on short-haul trips and up to £200 on a long-haul business class fare.

Miles Templeman, director general of the IOD, said: "Business travel is the lifeblood of a prosperous and competitive economy.
Many businesses rely on good air services to keep in touch with clients, suppliers and staff across the world.

"Decisions about the future of aviation in this country must strike the right balance between huge economic benefits of air travel and its substantial environmental costs."

Mr Templeman said the performance of Heathrow Airport had become "tarnished" as it was forced to handle rising demand with inadequate capacity.

Tim Bye, deputy chief executive of airline Bmi, which helped with the research, said: "Unsurprisingly, the report shows that reliability is important to business travellers."