The company also posted a solid jump in passenger traffic during July, but said market conditions were unchanged and lifted its target for its year-end fuel charges.

Passenger traffic rose 4.2% with premium traffic up 6.8% in July.

The company now sees full-year total revenues to gain 5.5%-6.5%, up one percentage point from its earlier target due to fuel surcharges and the stronger dollar.

Fuel costs in the current year are estimated to come in about 525 million pounds higher than in the fiscal year ended March 31, 2005, versus an earlier outlook a 450 million pounds increase. The fuel and oil bill in the year to March 31 was 1.13 billion pounds. During 1Q, fuel and oil costs climbed 38% to 355 million pounds.

Net unit costs declined 0.1% on efficiency gains in the business. Cost of sales decreased due partly to surging ticket bookings over the company’s Web site. The operating margin in 1Q was 8.5%, up 1.7 percentage points vs. last year.

All results are reported using International Financial Reporting Standards.

Liberty Media Corp. (L: chart) on Friday posted a smaller 2Q loss on revenue that topped analysts' expectations, with gains at the QVC home shopping channel and Starz Entertainment Group.

Revenue at QVC, which primarily operates a television network that pitches products for consumers to buy by phone or the Internet, rose 15% vs. last year, helped by hefty U.S. sales of apparel and accessories.

The net loss narrowed to $107 million, or 4 cents a share, versus $314 million, or 11 cents a share, a year ago.

Revenue jumped about 12% to $2.02 billion, beating the average analyst projection of $1.85 billion.

Chesapeake, a provider of paperboard and plastic packaging, announced it anticipates a 2Q loss, ranging from 9 cents to 11 cents a share. The company also lowered its earnings outlook to between 80 cents and $1 a share.

Sequa, aerospace and auto parts industry supplier, posted 2Q net income of $1.14 a share, up from 48 cents a share in the year-earlier period on strong sales.

National Oilwell Varco, oil and gas drilling manufacturer, announced 2Q profit of 35 cents a share, up from 25 cents a share last year on more–than-doubled revenue. Apart from charges, earnings would have been 49 cents, topping analysts’ forecasts by 5 cents.

The Washington Post, newspapers publisher, posted 2Q net income of $8.16 a share, down from $8.82 a share in the year-ago period on strong revenue, missing analysts’ forecasts of $9.65 cents a share.

Arbor Realty Trust, real estate investment trust, announced 2Q net income increased to $1.36 a share, up from 38 cents last year on strong revenue growth.

Cardinal Health, distributor of health-care products, posted 4Q net earnings of 66 cents a share, down vs. 90 cents gained in the same period in fiscal 2004 on quarterly revenue growth, missing analyst estimate of 89 cents a share.

Westwood One, radio and television stations services provider, posted 2Q net income of 25 cents a share, down vs. 26 cents a share in the year-earlier period on revenue growth, missing analysts’ forecasts of 27 cents a share.

Telus, telecom company, posted 2Q earnings of 53 cents a share, up vs. 48 cents a share for the same period last year on revenue growth, beating analyst estimate of 49 cents a share.

Bei Technologies, electronic sensor maker, announced 3Q net income went up to 36 cents a share on strong revenue growth.

Federal Signal, communications equipment manufacturer, posted 2Q earnings of 23 cents a share vs. a loss of 14 cents a share in the same period last year on revenue growth, topping analyst forecast of 12 cents a share

Hovnanian Enterprises, single-family detached homes developer, said 3Q dollar value of net contracts rose 34.8%, while the number of net contracts jumped 16.6% compared with the same quarter a year ago. The sales value of contract backlog rose 55.7% and the number of homes in contract backlog climbed 33.3%.

AmeriVest Properties, real estate company, announced 2Q net loss of 13 cents a share, down from 2 cents for the same period last year despite revenue growth.

Mills, real estate investment trust group, posted 2Q fund from operations of $1.01 a share, up vs. 94 cents a share in the same period last year despite falling revenue, matching analyst forecasts.

Redwood Trust, real estate investment trust, reported 2Q earnings of $1.50 per share vs. $1.74 per share in the same quarter a year earlier. Quarterly net interest income jumped to $53.2 million vs. $47.6 million in the year ago corresponding quarter.

Dynatec, mining companies services operator, posted 2Q net earnings of C$0.012 per share vs. C$0.007 per share in the year-ago comparable period on revenue growth.

Century Casinos, casino operator, reported 2Q net earnings of 4 cents per share, down vs. 8 cents per share in the year-earlier quarter on revenue growth, missing analysts’ expectations of 8 cents per share

ProspEx Resources, oil and gas company, posted 2Q earnings per share of C$0.03 for the quarter on strong 2Q net earnings compared with 2Q the prior year.

Pro-Pharmaceuticals, drug developer, posted a 2Q net loss of 6 cents per share vs. a net loss of 6 cents per share for the same quarter last year

Allis-Chalmers Energy, drilling and oil field services provider, posted 2Q net income of 12 cents per share, vs. 5 cents per share in the same quarter a year earlier on strong revenue.

Alliant Energy, electricity provider, posted 2Q loss from continuing operations of 8 cents per share, vs. income 30 cents per share in the same period last year, while analysts had seen earnings at 27 cents per share.