UPDATE 1-AirTran reports quarterly loss on fuel and hedges

* AirTran net loss is 91 cents per share

* Takes $41.5 million charge related to fuel hedges

* Revenue rose 10.6 percent to $673.3 million

CHICAGO, Oct 23 (Reuters) - AirTran Holdings AAI.N, parent of AirTran Airways, on Thursday posted a quarterly net loss, reversing a year-ago profit, on higher fuel costs and a non-cash charge related to its fuel hedges.

The company said its third-quarter net loss amounted to $107.1 million, or 91 cents per share, compared with a profit of $10.6 million, or 11 cents per share, a year earlier.

The company said it took a charge of $41.5 million due to falling value of its fuel hedges as the price of oil fell.

The airline industry has been battered severely this year by soaring fuel costs, which rallied to a record high in July alongside crude oil.

The price of a barrel of oil has fallen more than 50 percent since July, reducing the value of many airlines' fuel hedges.

AirTran said third-quarter revenue was $673.3 million, a gain of 10.6 percent.

The company ended the quarter with $318.1 million of unrestricted cash and investments. (Reporting by Kyle Peterson; Editing by Steve Orlofsky)