March 29, 2005 - 6:54PM

Jetstar`s chief executive Alan Joyce has turned down an offshore opportunity to help take the 10-month old budget airline to the next level of development.

Irish-born Australian Mr Joyce has expressed his commitment to the Qantas Group`s budget airline after withdrawing his candidature for the vacant job of chief executive of Irish-based carrier Aer Lingus.

``I remain both passionately and strongly committed to the Jetstar business and the benefits I believe it will continue to bring to the Qantas Group and the wider Australian tourism industry,`` Mr Joyce said.

Mr Joyce, who spent nine years at Aer Lingus, was appointed chief executive of Jetstar in 2003 and led the company to its launch in May 2004.

He now wants to oversee the airline`s further expansion in Australia and potential entry into international markets.

Jetstar report earnings before interest and tax of $19 million in the six months to December 31, 2004, beating initial expectations for its first year of performance.

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Advertisement``Jetstar is now well positioned to become progressively entrenched within the Australian domestic market,`` Mr Joyce said.

The upbeat outlook comes a week after rival budget airline Virgin Blue warned that record high aviation fuel costs were likely to impact on its profits and said it might have to raise fares by adding another fuel surcharge on tickets.

Jetstar has not warned of a potential fare hike but says its business model is to offer sustainable low fares and it is paying attention to external factors that could impact on this, including oil prices.

© 2005 AAP