Japan's second-largest carrier All Nippon Airways said its first-half net profit more than tripled to a record high on strong demand for international flights and the sale of its hotel business.

But operating profit dipped in the six months to September as it continued to be hit by high fuel costs as well as no revenue contribution from hotels it used to own, the company said.

ANA got a major boost by selling its hotel chain to Wall Street giant Morgan Stanley in a multibillion-dollar deal believed to be the biggest in Japanese real estate history.

It said first-half net profit jumped to 105.5 billion yen (US$920 million) from 33.2 billion yen in the same period last year.

Revenue rose 1.4 percent to 763.2 billion yen, also a record, despite the loss of revenue from the 13 hotels sold in Japan. Operating profit slipped 2.5 percent to 67 billion yen.

The results reflected a strong performance in international passenger and cargo services, while ANA also held its position in Japan and sought to cut costs, executive vice president Tomohiro Hidema said.

ANA has in recent years consistently outperformed its larger rival Japan Airlines, which has forecast a return to the black this year after major restructuring.

ANA said its revenue from international passenger flights grew more than 17 percent as it introduced the fuel-efficient Boeing 777-300ER and launched the company's first all-business class service, flying between Tokyo and Mumbai.

"Demand in the international passenger routes grew steadily while we had a positive contribution from an expansion in networks in North America and China," Hidema told a news conference.

The international cargo business also saw a 20 percent boost in revenue after ANA expanded its fleet.

Passenger numbers slipped domestically, but ANA said it still boosted revenue in the sector, in part by cutting back on unprofitable routes and raising prices of flight tickets.

The firm withdrew from the hotel sector but had reported 33.4 billion yen in revenue from hotels for the same period last year.

ANA left its full year forecast unchanged. ANA has predicted net profit at 64 billion yen and operating profit at 79 billion yen on sales at 1.49 trillion yen for the year to March 2008.

"However, it is difficult to predict the impact of fuel prices on our earnings as fuel prices are rising high again," Hidema said.

Total fuel costs surged by 25 percent to 106.2 billion yen for the first half, he said, adding that ANA forecasts the bill will reach 230 billion yen for the full year.