Blackpool Airport has suspended banner flights after the message 'White Lives Matter Burnley' was towed by an aeroplane over Etihad Stadium.
Lancashire Police is also investigating the banner, which was flown over the stadium during Manchester City's 5-0 win over Burnley on Monday.
In a statement, manager Stephen Smith said the airport and Blackpool Council are "outraged by this incident".
Blackpool Airport says the incident was reported to police and the Civil Aviation Authority last night.
The statement continues "We stand against racism of any kind and absolutely do not condone the activity, the message was offensive and the action reprehensible. The decision to fly the banner was taken entirely by the banner flying company without the knowledge or approval of the airport or Blackpool Council.
"Due to the nature of the activity, banners are not checked before take-off and the content is at the operator's discretion.
"Following an emergency review this morning, Blackpool Airport will suspend all banner towing operations at the airport with immediate effect and we would suggest that other airports should also consider this approach in light of what has happened at Blackpool."