DUBLIN, Ireland (AP) - Ryanair Holdings PLC reported a 30 percent increase in third-quarter earnings Monday and raised its profit forecast for the full year because of better-than-expected sales and lower fuel prices.

Europe's largest no-frills airline also said it hoped to renew its bid in May to take over its Dublin-based rival Aer Lingus, presuming European Union competition authorities give their conditional approval by then. Shares in Ryanair and Aer Lingus both surged on the news.

Ryanair withdrew its hostile bid in December when EU authorities expanded their investigation into whether a merged operation would produce an Irish monopoly.

For the three months ended Dec. 31, Ryanair's net profit rose 30 percent to 47.7 million euros ($61.8 million) and sales rose 33 percent to 492.8 million euros ($638.4 million).

The number of passengers rose 19 percent to 10.3 million, reflecting Ryanair's expansion that meant 21 percent more seats were on sale compared to the same period in 2005. Profits per passenger rose 12 percent, partly because of the March 2006 introduction of extra fees for checked baggage.

Ryanair said it expects fourth-quarter net profit to be flat, an improvement on its earlier forecast of a 5 percent decline. The airline also said it expects full-year profit to rise 29 percent to 390 million euros ($505 million), up from its previous forecast of 16 percent.

Shares in Ryanair rose 6.1 percent to 11.90 euros ($15.42) on the Irish Stock Exchange. Aer Lingus shares rose 5.4 percent to 2.95 euros ($3.82) - their highest mark since Ryanair's bid, launched Oct. 5 at 2.80 euros ($3.63) a share, was withdrawn Dec. 20.

Ryanair Chief Executive Michael O'Leary noted that the carrier's strong performance was happening as other airlines were struggling to cope with high fuel costs.

He said fuel costs represented 40 percent of the airline's operating cost, but were under control thanks to a string of advance supply contracts that locked in prices.

"We took advantage of the recent oil price weakness to extend our hedging position for fiscal 2008," O'Leary said, noting that these fuel-delivery contracts involved half of Ryanair's needs for the April-September period and 90 percent for the October-March 2008 period.

Ryanair, which began in 1985 with a single route linking southeast Ireland and London, now operates 440 routes in 24 countries, often utilizing out-of-the-way airports to minimize costs.

O'Leary said Ryanair plans to open a new hub in Bremen, northwest Germany, in April, and will announce details of another hub in continental Europe this month.

O'Leary said Ryanair planned to retain its 25.2 percent stake in Aer Lingus even if the EU shoots down its takeover hopes, or if it fails to secure majority support from Aer Lingus shareholders.

Ryanair spent 342.2 million euros ($442.9 million) acquiring its Aer Lingus stake after the Irish government in September sold off most of its holding in the previously state-controlled airline.

A loose alliance of Aer Lingus shareholders - including the government, Aer Lingus pilots and an employee trust - oppose Ryanair's takeover bid and hold more than 45 percent, complicating O'Leary's attempt to take a controlling stake. He has pledged to slash the Aer Lingus payroll and introduce other cost cuts if he prevails.

Despite its spending on Aer Lingus, Ryanair said its cash reserves have grown by 2.4 percent to nearly 2.02 billion euros ($2.62 billion).