per cent of all cargo carried by UK airlines, and when combined with its cargo operations the airline carries over 60 per cent of all cargo carried by UK airlines. The advent in the mid-1990s of 'no-frills' carriers, such as easyJet, has had a significant influence on air travel in the UK. In 2005 these airlines carried 77.5 million passengers, up from just 4.3 million in 1996. They are responsible for the growth of regional airports, operating from 35 airports in 2006 compared to 10 in 1996, and increasing the choice of international destinations, serving 150 in 2006, compared to 12 a decade earlier. The annual rate of growth in the overall demand for air travel has remained stable since 1975, averaging 5.8 per cent annually. Recent growth is being serviced by the no-frills airlines at the expense of traditional carriers which, since 2000, have experienced flat or declining traffic levels. In response, traditional carriers have lowered costs to compete more effectively on price, leading to lower prices on the short haul routes serviced by this sector, especially in business fares. They have also limited or reduced capacity and in some cases launched no-frills subsidiaries of their own. Passenger travel Just over a fifth of all terminal passengers are travelling on domestic routes only, whilst half are travelling between the UK and the rest of the European Union (EU). Of the latter, travel between the UK and Spain, France, Germany and Italy account for around half, with Spain almost matching the other three combined in terms of passenger numbers. Outside of the EU, the United States, the Far East, Switzerland and the Middle East together account for just over half of all passengers flying between the UK and the rest of the world, with the USA exceeding the other three combined in terms of passenger numbers. Air travel is the most popular mode of transport for visitors both to and from the UK. In 2005 it was used for 80 per cent of all visits by UK residents travelling overseas and by 74 per cent of all inbound visits. Just over a quarter of all passengers are travelling on business. The advent of no-frills carriers has had a significant effect on passenger travel profiles, with strong growth in business travel from regional airports, and increasing inbound traffic generated for the purposes of non-UK residents visiting friends and relatives based in