An air diffusion based system (Airx) was developed to control the dissolved oxygen levels in aquaculture sea cages. The system was introduced and then tested for 37 days in a sea bass sea cage (aerated cage). A second sea bass sea cage, without the AirX, was used as a control. Oxygen levels were measured in both cages at the start of the trial, before the AirX system was introduced, and during the working period of the AirX system. Fish samples were collected 15 days after the AirX system was introduced and at the end of the experiment. Blood smears were prepared and examined microscopically. Erythrocyte major axis, minor axis and area of fish erythrocytes were measured. Leucocyte differentiation was also examined. In the control cage, the fish had significantly larger red blood cells when compared with the red blood cells of the fish in the aerated cage. Histological examination of the gills and brain revealed no morphological differences or alterations between the two groups of fish. This study demonstrated that an air diffuser system could improve the water quality of fish farmed in sea cages and enhance sea bass physiological performance, especially if DO levels fall below 60% oxygen saturation.