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AirTran Reports 4Q profit, Record Annual Earnings
AP Airlines Writer



AirTran reiterated it expects to grow capacity by 3 percent to 4 percent in 2010 and 2 percent to 3 percent in 2011. Capacity is measured by available seats times miles flown. AirTran won't take delivery of any more airplanes until 2011.

Standard & Poor's on Monday upgraded its opinion on shares of AirTran Holdings Inc., to "buy" from "hold." S&P expects AirTran revenue to rise 9 percent "on stronger passenger demand and higher pricing," although it cut its 2010 earnings per share estimate, citing higher oil prices. But S&P said AirTran shares trade at a large discount to its peers, giving the stock upside potential.

AirTran has raised the prospect of more add-on fees for passengers. Executives have said charging passengers for seat assignments at the time of booking is one area for revenue growth. Checked bag fees have already been a boon for airlines. Consumers tend to look for the cheapest fare when they initially buy a ticket. But they appear more likely to spend money on extras as their trip goes along.

The airline has its hub in Atlanta and has over 700 daily flights to 68 destinations.


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