Virgin Atlantic has reported a jump in pre-tax profit to 72 million pounds ($125.9 million) for the first half of its fiscal 2008/2009 on higher passenger traffic and stronger revenues.

Chief executive Steve Ridgway told the International Aviation Club in Washington that the company "cushioned our business well" during the industry's financial slide on sharply higher fuel prices and overall economic weakness.

Ridgway said pre-tax profits at the carrier and its tour operator affiliate, Virgin Holidays, rose from 43 million pounds ($75 million) in the year ago period. Revenues rose 15 percent in the March to August period while passenger traffic rose three percent to three million.

Premium business was up six percent.

Virgin Atlantic, controlled by Richard Branson's Virgin Group, also had strong hedges in place to counter fuel price spikes. The carrier said its cash position increased to $1.3 billion.

"We saw signs two years ago that the downturn was around the corner and adjusted our capacity, deferred aircraft orders, ensured we were well hedged and build up our cash," Ridgway said.

While high fuel prices and the spreading global credit crisis pose obvious threats to air travel, Ridgway's chief priority in Washington was to lobby against a proposal by British Airways and American Airlines for antitrust immunity.

"The current economic malaise is no justification for regulators to let the application for antitrust immunity through," Ridgway said.

Virgin Atlantic fears immunity for American and British Airways, a powerhouse at London Heathrow, would impede its ability to "compete fairly" on key transatlantic routes. "Regulators need to show more than ever that they are guarding consumers' interests," Ridgway said.

Branson said last month that he would "spend millions of dollars" to block the planned alliance, which also includes Spain's Iberia.

Antitrust immunity would permit the carriers' to cooperate on pricing and scheduling.

American and British Airways executives have said the arrangement would not be anticompetitive or increase fares, as Virgin Atlantic contends.

A previous immunity attempt by British Airways and American foundered over regulatory concerns about access to Heathrow.