Losses at Aer Lingus, the former state-owned Irish carrier, increased in the first half as revenues fell because of cuts in fares, reduced seat sales and higher fuel costs.

The airline, which has fended off two hostile takeover bids from Ryanair, the rival Irish airline, saw pre-tax losses widen from €21.3m to €81.7m ($116m) in the six months to June 30. The 2008 half-year result included a €17.6m exceptional charge related to cost reductions.