Low-cost airline easyJet saw the rising price of oil burn a hole in its profits.

The no-frills airline reported pre-tax losses for the first half of the year had trebled to £57 million on the same period in 2007.

But bosses were still upbeat after posting a 15 per cent increase in passenger numbers.

"The price of jet fuel has risen 35 per cent over the last three months and is now 80 per cent higher than last year," he said.

"Nobody knows how much of this increase is driven by short term financial speculation and how much is a longer term sustainable increase.

"What is certain is that if these fuel increases are maintained many of our weaker competitors will disappear or downsize and easyJet will emerge even stronger reflecting the combination of our business model, our cost advantage, our new fuel efficient fleet and the strength of our network."

Mr Harrison said easyJet was better equipped to deal with the growing fuel costs as its planes were newer and more economical than many of its rivals.

"Most of these airlines are flying planes that are more than 15 years old. They were uneconomic when oil was $70 (£35), they are certainly uneconomic at $120 (£60) a barrel," he added.

Easyjet traditionally makes its money in the second half of the year and the Luton-based airline is confident the bookings will continue to fly through the door for the summer season.

Visit the easyJet website at www.easyjet.com.