Ebookers.com yesterday saw a much needed rise in its share price as the online travel agency reported third quarter results with sales 16% ahead of market forecasts.

The shares went up by 8% on the Neuer Markt, to close at €8.1, as the company reassured investors that it was on course for profitability by early 2002. The share price is, however, still down about 80% on its all time high, after speculation about cash difficulties.

Dinesh Dhamija, chief executive officer of Ebookers, which raised $45m in July, said the company would break into the European business travel market within the year.

"We will be moving into business travel as soon as possible and we will certainly be looking to buy a company in Italy", Mr Dhamija said.

The company, which has expanded into 11 European countries, yesterday announced that sales, of £23m, had risen more than three and a half times, compared to the same period a year earlier.

Pre-tax loss, excluding stock compensation, was £7.2m and Ebookers has£36.7m in the bank, money to be used until profitability is achieved.

The number of registered users at the end of the third quarter was 740, 000, up from 500,000 at the end of the previous quarter.

According to Ebookers, losses have peaked and are on a downward spiral. The marketing and branding on the whole has been done, so costs are going down. "It is becoming a more stable business", Mr Dhamija said.

The firm also generates revenue from Ebookersfinance.com, which is on the Ebookers site and is run by Moneygator.com.