The airline said it had placed an order for 50 new Boeing 737 jets with an option for 50 more.

It also placed an extra order for 10 Boeing 717 aircraft.

No financial details were given, but reports said the order could be worth between $5bn to $6bn based on list prices.

Order battle

The announcement is the second good piece of news for Boeing this week.

On Monday, the aviation giant announced it had won an order for 45 jetliners from Japan's All Nippon Airways (ANA).

Boeing has been losing out recently to Airbus, with its European rival unveiling a massive $12.5bn order from Dubai-based airline Emirates at the Paris air show last month.

Airbus is expected to overtake Boeing in aircraft deliveries this year.

Market reaction

AirTran said it was buying some of the 737s directly and would be leasing others from GECAS, General Electric's aviation leasing company.

"Building on our long-standing partnership with Boeing, this aircraft order ensures that AirTran Airways is poised to move into the next stage as one of the country's major carriers," said AirTran chief executive Joe Leonard.

Shares in Boeing closed up 33 cents at $34.65.