Eurotunnel finally agreed a deal this year to slash its huge debts

Net losses for the six months to June were 32m euros ($44m; �22m) compared with 105m euros a year ago.

The firm spent 181m euros on servicing its debt, compared with the 245m euros it spent in the first half of 2006.

It was allowed to pay less interest as part of its Safeguard protection from the Paris Commercial Court.

Earnings in the first half of 2007 were reduced by the scheduled ending of the Minimum Usage Charge paid by train companies using the tunnel.

Restructuring deal

In the second half of the year, Eurotunnel will benefit from being able to pay even less to service its debt as a result of the restructuring deal that was sealed at the end of June.

That deal with creditors will halve the amount of debt on Eurotunnel's books.

The company has struggled with the huge cost of building the tunnel since it was opened in 1994.

It also says that in the second half of the year its revenues could be boosted by the Rugby World Cup in France and the launch of faster Eurostar services in November.

Eurotunnel's shuttle services saw an 8% increase in car traffic and 9% growth in truck numbers over the period.

The number of train passengers using Eurostar rose 5% but rail freight fell 14%.

Eurostar is a separate company that pays Eurotunnel to run its train services through the tunnel.