CHICAGO, Jan 29 (Reuters) - AirTran Holdings Inc. (AAI) Chief Executive Joe Leonard said on Tuesday the airline was talking to Boeing Co (BA) about taking 20 additional model 717 aircraft beyond those already on order, and that it expects to be profitable by the second quarter. Leonard told Reuters that AirTran Airways, based in Orlando, Florida, and flying heavily out of Atlanta, is talking about 717s that AMR Corp.'s (AMR) American Airlines has decided to retire. "We're working on financing with Boeing," Leonard said in an interview of the 20 potential aircraft additions. Of the American Airlines jets, 24 are on lease from Boeing and will be returned, and the other six are leased from Pembroke Group Ltd., a Dublin-based company. AirTran will grow by about 20 percent this year as measured by available seat miles, Leonard added. "The bookings are looking pretty good," he said. "Each month we get a little better than the month before." AirTran has 30 DC-9s and 30 717s in its fleet currently. Leonard said the airline could take up to 20 717s this year and retire 14 DC-9s, for a net addition to the fleet of six aircraft, bringing the total fleet to 66. A spokesman said the airline currently has 23 Boeing 717s on order for the next two years. Leonard also said AirTran has no plans now to apply for government loan guarantees as it ended the year with about $103 million cash on hand. Earlier, the carrier posted a $14 million net loss for the fourth-quarter but beat Wall Street expectations. Leonard attributed the relatively strong performance of AirTran among peers to a low-cost structure, among other things. The airline also got wage adjustments from pilots and mechanics immediately after the Sept. 11 attacks. Shares of AirTran were up 5.29 percent on the New York Stock Exchange to $6.84.