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Air Berlin's third-quarter sales and earnings rose sharply on strong bookings and the inclusion of September operations from recent purchase DBA.

Quarterly sales rose 28 percent to EUR510 million (USD$670 million), Air Berlin said, while earnings before interest and tax (EBIT) jumped to EUR54.3 million (USD$71.3 million) from EUR51.7 million (USD$67.9 million) in the year-ago quarter.

Europe's third-biggest budget carrier said on Tuesday it expects 2007 operating profit to rise by at least 30 percent, faster than forecast revenue growth of more than 15 percent.

It sees net profit for the current business year at more than EUR40 million (USD$52.5 million).

The company said it does not plan to pay a dividend for 2006, as it aims to keep a solid financial base. It also raised the possibility of a capital increase to help fund the purchase of 85 Boeing 737 planes.

The overall price for the planes is USD$5.7 billion, making it the biggest Boeing 737 order from Germany. The new planes would replace expiring leasing contracts and help growth, the firm said.

The airline said the 85 planes would be delivered between 2007 and 2014, and that 25 would be for DBA, which it bought in August.

Air Berlin also plans to order 60 Boeing 737-800 Next Generation jets.

The large order for Boeing planes shows a break from earlier plans to only rely on Airbus, from which it ordered 70 planes two years ago.

(Reuters)