Skywest Airlines has recorded a 37 per cent fall in interim net profit to $3.5 million, mainly because of aircraft cross-hire expenses.

The airline in its half-year results saw revenue increase by 16 per cent to $112 million on the back of wet leasing to Virgin Australia and fly in-fly out charter activity.

"Further growth is expected with certain resource companies planning to expand in the region and Wheatstone LNG contract under way," executive chairman Jeff Chatfield said.

Mr Chatfield said the cross hire expenses had knocked $S2.6 million off the bottom line and damage to an aircraft by a service provider had cost the Singapore-based company $S600,000.,