Dinesh Dhamija: Effects of 11 September now over

It said profits had more than doubled to �20.3m ($28.95m) last year, and it had made a strong start to 2002.

The firm's rebound echoes that of competitors Expedia and Travelocity, which have reported an increase in travel business following a slump in bookings after 11 September.

"Bookings so far in 2002 have regained a strong upward momentum indicating that the effect of the September 11 tragedy on our business is now over," said chief executive Dinesh Dhamija.

He said he expected to see costs at the company fall further in 2002, as the investment in moving some of its operations in India starts to deliver.

Outlook improving

Ebookers has nearly 150 staff in India, but could increase that to 800 as it looks to trim staff costs elsewhere.

In October, it announced it was to cut up to 20% of its staff of 700 in 11 countries.

Mr Dhamija said the online travel industry outlook was improving, citing a forecast from research firm Jupiter, which forecast European online travel rising nearly 60% in 2002.

Ebookers said it has renegotiated online advertising agreements in the second half of last year and some of that spending has been redirected towards its traditional travel arm, Flightbookers.