Higher fuel prices, pay bills and airport charges have led to a 42% fall in profits at Aer Lingus in the first six months of this year.
However, revenue was up 12.9% to €574m, as passenger numbers increased almost 6%, as capacity rose.
The airline, which is embroiled in disputes over pay and the future of its Shannon Heathrow service, reported pre-tax profits of €11.5m between January and the end of June.
Aer Lingus CEO Dermot Mannion said the airline delivered a solid financial performance in the first six months of 2007, with an operating profit of €2.6m.
He said the airline operates in a seasonal business, with the majority of profits earned in the second half of the year.
'With the substantial increases in fuel prices in 2007, this seasonality influence has had a more pronounced impact on our financial performance in the first six months', he said.
He added that early indications of the airline's performance in the second six months of the year are encouraging.
The income from seat sales increased by €47m to just under €500m compared to the first half of last year.
Ancillary revenue, including baggage charges and booking fees increased by more than €20m.
Fuel costs were more than 28% higher at €116m while staff costs rose 12% to €150m, though the number employed increased by 220 personnel, while airport charges per passenger increased 4.3%.
The airline says the recently averted pilots' strike cost €3.5m, and the airline's defence of Ryanair's take over bid cost almost €8m.
The airline said this morning Ryanair's call on Aer Lingus to switch its Dublin Gatwick to service to Belfast to secure the future of the Shannon Heathrow service would be anti-competitive and destroy shareholder value.
Aer Lingus shares closed down one cent at €2.42 in Dublin.
