AirTran sees more opportunity for fee revenue

ATLANTA (AP) — - AirTran Airways sees more opportunity to increase revenue from add-on fees it charges passengers.

Chief financial officer Arne Haak tells an investor conference Thursday that customers want the cheapest fare when they buy their tickets, but seem willing to shell out extra money for fees as they go through the travel process.

Haak says 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.

The Orlando, Fla.-based discount carrier expects to make $340 million this year in ancillary revenue, which includes revenue from add-on fees. That would be a 45 percent jump from 2008.

AirTran is one of the few profitable major U.S. airlines.