Alaska Air Group, on Tuesday reported a better-than-expected second-quarter profit as fuller flights and higher fares offset increased fuel costs.

Net income more than tripled to USD$55.5 million from USD$17.4 million in the year-ago quarter.

Alaska Air, like other airlines, has been hurt by high fuel costs, but the domestic industry has seen its fortunes somewhat reversed as carriers cut back on capacity and increased fares.

Strong demand during the busy summer travel season has also helped as airlines have been able to push through fare increases and still fly fuller planes.

Alaska's operating revenue rose to USD$873 million from USD$756.5 million. Cash and short-term investments were about USD$1.1 billion as of June 30, up from USD$983 million on December 31.

Passenger traffic in the quarter increased 7.2 percent on a capacity increase of 5.2 percent.

Aircraft fuel expenses, including hedging gains and losses, increased to USD$199.8 million in the quarter, up from USD$147.7 million in the year-earlier period.