Photographs were taken as passengers on domestic flights passed through security and used for staff to check the correct passenger was boarding a flight and to stop domestic passengers buying goods at duty-free prices.
According to the newspaper, passenger Tim Hedgley complained that his photograph was taken against his will and therefore in breach of the Data Protection Act.
After a prolonged battle for an apology, airport bosses made a payment to settle his claim. Manchester Airport now gives passengers leaflets that advise them of their right to refuse being photographed.
Manchester Evening News described it as a landmark payout; but Shelagh Gaskill, a partner with Pinsent Masons, the law firm behind OUT-LAW.COM, suggests otherwise.
"There have been much more substantial payouts for breaches of privacy, but normally you don't hear about them," said Gaskill, a data protection specialist. "Companies will generally try to avoid the adverse publicity that can come with a breach of the Data Protection Act, so a payment will be made conditional upon confidentiality."