By Kathy Fieweger CHICAGO, Jan 29 (Reuters) - Two smaller U.S. airlines, AirTran and ATA, posted a combined fourth-quarter net loss of $95 million on Tuesday, but both said they see profits returning by the second quarter of 2002 as traffic recovers from lows after the Sept. 11 attacks. Indianapolis-based Amtran Inc. (AMTR), the No. 10 U.S. carrier, had a net loss of $81.3 million, or $7.05 per share. That included special charges of $77 million for aircraft, another $12 million in special charges and a government cash infusion. Revenues fell to $248 million from $289 million. AirTran Holdings Inc. (AAI) posted a net loss of $14 million, or 20 cents a share. Before special items including aircraft charges and a government cash grant, it lost $12 million, or 19 cents a share. Revenues fell to $135 million from $169 million. Amtran is the parent of American Trans Air, or ATA, which flies out of Chicago's Midway Airport. AirTran, based in Orlando, Florida and operating its hub in Atlanta, is the parent of AirTran Airways, the second-largest low-cost airline behind Southwest Airlines Co. (LUV). The chief executives of both airlines were upbeat Tuesday about the second quarter. AirTran Chief Executive Joe Leonard said in an interview that the airline sees a profit in the second quarter as bookings looked good. The airline is talking to airplane manufacturer Boeing Co. (BA) about taking an additional 20 model 717 aircraft in 2002 beyond the 23 already on order for the next two years. The airline currently has 60 jets, half of which are 717s and the other half DC-9s, of which 14 could be retired early, according to a spokesman. AmTran Chief Executive John Tague told analysts on a conference call that based on where traffic trends are now, a second-quarter profit was a "reasonable expectation." Shares of AirTran rallied 7.6 percent, or 49 cents, to $6.98 in afternoon New York Stock Exchange trading. Shares of Amtran were unchanged at $13 on Nasdaq. Among other major carriers, only Continental Airlines Inc. (CAL) has talked publicly about posting a profit in the second quarter. Most major carriers have been guarded, only saying that cash flow should turn positive in the second or third quarter. Among the majors, only Southwest posted a profit in the fourth quarter, its second since the Sept. 11 attacks. AMR Corp. (AMR), parent of American Airlines and TWA, last week posted a net loss of nearly $800 million. Delta Air Lines Inc.(DAL) and UAL Corp. (UAL) will report this week. In another indication that airlines are seeing some improvement in the overall picture, American Air released details of the flights it intends to restore. As reported by Reuters on Monday, Chief Executive Donald Carty told employees the capacity increases were part of the airline's strategy to return to profitability. The world's largest airline will add 41 round-trip flights from Dallas/Fort Worth airport to 37 destinations by March, increasing frequencies in existing markets. American said the increases are in response to indications that air travel is increasing since Sept. 11.