Budget airline easyJet said it was winning the battle to shield its profits from soaring fuel prices.
Operating margins during the six months to March 31 will be broadly in line with last year.
Oil is 50 per cent more expensive than a year ago and the past six months have seen the cost of crude set a string of new records, culminating in a high of more than $57 a barrel.
EasyJet operates flights out of Newcastle Airport.
Chief executive Ray Webster said: "The price of fuel remains high and volatile.
"In spite of this, operating margins for the period are expected to be broadly in line with last year."
In a trading statement ahead of its interim results on May 24, easyJet said it expected to carry 24 per cent more passengers than a year ago as its European expansion pays off.
The company - founded by Greek entrepreneur Stelios Haji-Iannou - will pass a milestone next month when it receives its 100th aircraft and it now flies to 60 airports.
Mr Webster said trading conditions were stable even though competition from smaller low-cost airlines and former flag-carriers was unlikely to diminish.
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