Air France and KLM are prospering from their merged in May

Profits for the three months to September 30 were 201m euros ($264m; �140m), compared with year-ago like-for-like profits of 143m euros.

The company said the May merger had lifted revenues faster than expected. They were 5.13bn euros for the quarter, up from 4.82bn euros a year ago.

It predicted full-year growth in spite of the current high oil prices.

A year ago the then separate Air France and KLM companies had strikes, the SARs flu virus and the start of the war in Iraq to put passengers off flying.

Now despite rising fuel costs the merged group is sounding more optimistic.

"The synergies we announced appeared much more quickly than we expected," Air France KLM deputy chief executive Pierre-Henri Gourgeon told reporters.

Management savings

"We have today returned to the path of vigorous growth."

Air France and KLM fly under separate brand names, but the common management following the 800m euro merger has brought cost savings and synergies.

The merger has enabled KLM to use Air France's flights as feeders for destinations it serves but Air France does not .

Traffic over the quarter grew 7.8%,with a 6.5% increase in capacity, resulting in a nearly 1% improvement in the airline's load factor to 81.1%.