Eastern Cuts Fares; Savings on Most Flights 25% to 45%

Eastern Airlines, in a bid to draw more passengers as it struggles to emerge from bankruptcy, said Tuesday that it will slash its fares on most domestic flights by 25% to 45% below the lowest industry rate.

“Our objective is to maximize revenues on board the airplanes. This initiative is aimed at discretionary travelers,” said George Brennan, vice president of the Texas Air Corp. unit.

“Excluding flights from the Northeast to the West, we are talking about savings between 25% and 45%,” he said.

The airline said the fares require a seven-day advance purchase and a two-night stay. The tickets are refundable, may be changed without penalty and can be used from Jan. 9 through May 1, excluding holiday blackout dates.

Brennan said the fare cuts apply to between 90% and 95% of Eastern’s domestic flights. The remaining fares were cut last week in response to general industry reductions, he added.

Under the promotion, Eastern will charge $69 each way for travel between any Florida city and Atlanta.

Eastern said flights to Florida from most points in the East start at about $69 each way.

A flight from New York to Miami will cost $79 each way off-peak and $99 each way during peak travel, compared to the lowest industry fares of $149 off-peak and $169 on-peak, Eastern said.

The new Eastern fares are based on a round-trip purchase. Off-peak prices are available for travel from noon Monday until noon Friday. Weekend fares are an additional $20 each way.

Eastern said the new fares are not available for travel to Florida on Feb. 14-18 and April 12, 13 and 22. They are not available for travel from Florida on Feb. 19, Feb. 24-26, April 12-13 and April 21-23.

The fares to and from all other cities are not available April 12-13 and April 22.

The fare cuts were expected by industry analysts, who said Eastern was trying to boost traffic and improve its cash flow.

Last week, the company said it would eliminate about 600 jobs and temporarily cut wages and benefits for some employees in an effort to reduce costs.

Separately, another Texas Air unit said it will raise domestic and international air fares by 4% because of soaring jet fuel prices.

Continental Airlines said the fare increases will go into effect on all tickets purchased after Jan. 10 for domestic travel and on subsequent January dates on international tickets.

The carrier said its fuel costs rose 43% to an average of 71 cents a gallon in the fourth quarter of 1989 from an average of 49.6 cents a gallon in the 1988 period.

Continental said it has seen fuel prices jump to $1.10 from 63.5 cents a gallon on the New York market during the past 30 days.

Other carriers, including UAL Corp. and Trans World Airlines Inc., said they are considering ways to defray rising fuel costs.