CHICAGO (Reuters) - Shares of AirTran Holdings (AAI.N: Quote, Profile, Research), parent of low-cost carrier AirTran Airways, jumped more than 30 percent in early trade on Monday, recovering Friday's steep losses after the airline declared it had ample cash on hand to support its operations.

AirTran shares plummeted on Friday after rival Frontier Airlines FRNT.O filed for bankruptcy as it faced a weakening cash position. News of Frontier's troubles weighed on other low-cost airlines.

AirTran issued a statement after the end of trading on Friday, saying its liquidity has improved and that it had cash and investments amounting to $358 million as of March 31.

The airline industry has been battered by soaring fuel costs and a weakening economy that some experts believe could drive more carriers into bankruptcy.

AirTran shares were up 30.75 percent, or $1.27, at $5.40 on the New York Stock Exchange in early trade on Monday.

(Reporting by Kyle Peterson, editing by Dave Zimmerman)