Prague  - State-owned national carrier Czech Airlines (CSA), which is earmarked for privatization next year, slightly expanded its first-half loss year-on-year amid soaring fuel prices, the company said Thursday.

The airline said it lost 178 million koruny (10.4 million dollars) in the first six months of 2008, compared to 175 million koruny in the same period the previous year.

The revenues grew 3.5 per cent to 11.17 billion koruny January- June, compared to the first half last year, the firm said.

"Czech Airlines managed to nearly offset higher fuel costs and the impact of a strong koruna by improving operations in the first half," company president Radomir Lasak said in a statement.

The company said its operational costs were down 2.4 per cent year-on-year to 10.97 billion koruny in the first half, although the firm spent an additional 179 million koruny on fuel compared to the previous year.

In June, CSA expected to end this year with a net profit of 391 million koruny, including proceeds from a catering unit sale, but on Thursday the airline declined to make any forecasts.

"Considering the sector's turbulent shape, it is impossible to be specific," CSA spokeswoman Daniela Hupakova said.

"Nevertheless, the firm expects to be in black numbers at the end of the year."

In 2007, the carrier returned to the black after two years in the red.

The firm plunged into losses in 2005 under the management of former Social Democratic defence minister Jaroslav Tvrdik.

In a bid to get back in shape, the airline shed several of its units and announced plans to modernize its aircraft and attract richer clients.

The centre-right government of Prime Minister Mirek Topolanek plans to sell CSA, a member of the SkyTeam alliance, next year. Analysts estimate the carrier's price at 5 billion koruny. (dpa)