DALLAS (AP) — Last year Southwest Airlines' revenue shrank for the first time ever. Now the CEO says it could rebound with record revenue in 2010.

Southwest reported Thursday that January traffic rose 7.1 percent from a year ago, and CEO Gary Kelly said the nation's biggest discount airline had strong bookings for February and March.

If that trend holds, Southwest should finish 2010 with revenue much higher than last year. Kelly told an investors conference in New York "it can even surpass the revenues we had in 2008."

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