AirTran Airways sees more opportunity to increase revenue from add-on fees it charges passengers.

Chief Financial Officer Arne Haak told 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 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.

The Orlando, Fla.-based discount carrier, which has its hub in Atlanta, 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.

"We're a company that can be nimble and take advantage of where the opportunities present themselves," Haak said during a presentation at the Imperial Capital Global Opportunities Conference in New York that was broadcast on the Internet.

AirTran has benefited by having low costs and focusing on domestic routes where it believes it can make money. Recently, it also has been adding service to the Caribbean.

Last month its parent company reported a $10.4 million third-quarter profit even though sales declined more than 11 percent. That marked AirTran's third quarter in a row of profit as most major U.S. carriers struggle amid weak overall demand for business and international travel.

Haak said the economic outlook remains uncertain, and he noted that fuel prices are on the rise again.

But he said so-called ancillary revenues are "very good for AirTran and low-cost carriers." He said add-on fees "are really here to stay." Continued...