AirTran, the fast-growing US low-fare airline, on Tuesday reported a net profit of $2.7m for 2005, though its tiny margin contrasted with the fortunes of low-cost carriers in Europe and Asia.

The Atlanta-based airline has benefited from capacity cuts by rivals US Airways and Delta Air Lines and the improving revenue environment in key East Coast markets. It contained non-fuel costs while boosting capacity by 28 per cent over the year.