Vienna  - Budget carrier SkyEurope reported Friday that its net loss for its business year running until the end of September more than doubled to 59.4 million euros
(77 million dollars), as results were affected by high fuel prices.

The company defaulted on an aircraft lease earlier this week and has to repay loans worth 25 million euros to US investor York Global Finance, one of its major stakeholders, by December 15.

As of September 30, the budget carrier's cash reserves amounted to 1.3 million euros, down from 11.6 million euros in 2007, SkyEurope said in its preliminary annual report.

The airline is listed on the Vienna stock exchange but operates from the Slovak capital Bratislava.

Operating losses widened to 56.1 million euros, from a loss of 20.9 million euros in the previous business year.

Sales increased by 10.5 per cent to 260.9 million euros, but SkyEurope paid 67.1 per cent more for its fuel in the business year, ending in September, than in the previous accounting period.

To cut costs, the airline said it would reduce its capacity by 19 per cent during the winter.

In addition, SkyEurope has started talks with Flyholding S. p. A., the owner of Italian low-cost carrier myair. com, on forming a strategic alliance to share facilities and resources. (dpa)