AirTran bolsters liquidity and increases financial flexibility

These transactions are effective immediately, and as a result, AirTran expects to end the current fiscal quarter with more than $400 million of unrestricted cash and short-term investments:

• $175 Million of Credit Facilities: AirTran and its lender have extended the expiration date of its combined letter of credit and revolving line of credit facilities to December 31, 2010. The amount AirTran can now borrow under its revolving line of credit facility has increased from $90 million to $125 million. The total size of the credit facility has been reduced from $215 million to $175 million as a result of AirTran's re-optimization of the letter of credit facility from $125 million to $50 million.

• Credit Card Processing Agreements: AirTran Airways and its largest credit card processor have recently agreed to extend the current credit card processing agreement from December 31, 2009, to December 31, 2010. As a result of the enhancements to the credit facilities and the revised covenants of our two largest credit card processing agreements, AirTran was not subject to any cash holdbacks as of September 30, 2009, with its two largest card processors.

"We are very pleased by today's announcement of these important commercial transactions. They demonstrate the confidence of our financial partners in the ability of AirTran Airways and our Crew Members to execute our strategic plan," said Bob Fornaro, AirTran's chairman, president and chief executive officer. "Our improved profitability, enhanced liquidity, and industry-leading low cost-structure position us well for the future despite the challenging economic climate."