The finite-time thermodynamic performance of an air-standard dual cycle, with heat transfer and friction-like term losses, is analyzed and optimized in this paper. The relations between the power output and the compression ratio, and between the thermal efficiency and the compression ratio of the cycle are derived. Moreover, the effects of heat transfer and global losses lumped in a friction-like term on the performance of the cycle are shown by detailed numerical examples. (C) 2004 Elsevier Ltd. All rights reserved.