Aer Lingus made an operating profit €14.3 million for the first half of 2003 and reported progress in cutting costs.
The operating profit marks a turnaround for the airline, which reported a loss of €12.6 million for the same period last year and a loss of €38.1 million for the first half of 2001.
Turnover at €414.1 million was down 8.6 per cent from €453.1 million for the first half of 2002 - driven by the continuing reduction in fares. Aer Lingus said costs were €399.8 million, 14.2 per cent lower than in the first half of 2002 and 30 per cent down on 2001.
The cost savings passed on as lower fares helped lift the passenger-load factor passenger to 80 per cent for the first half of 2003 compared with 73 per cent for the same period last year and 69 per cent in the first six months of 2001.
Aer Lingus chief executive Mr Willie Walsh the airline was making "good progress" towards becoming a low-fares airline delivering a quality service.
Commenting on the break-up of Aer Rianta Mr Willie Walsh said: "We are excited by the opportunities opening up in the Irish air travel market. Independent airports at Cork, Dublin and Shannon represent great growth potential and we are poised to take advantage of the impending change in the Ireland/US bilateral which will open up new US gateways for Aer Lingus".
Mr Walsh warned that many challenges still lay ahead to improve profitability reduce costs and add new routes.
"The progress we have made will act as a spur to further change," Mr Walsh said.