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Yet Another Round of Cuts in Air Fares : Transportation: Delta and Continental announce deals for 30% off in a ripple effect from earlier trims.

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TIMES STAFF WRITER

Delta Air Lines and Continental Airlines announced another round of fare discounts Thursday, in moves that suggest that the summer fare war may have exhausted much of the demand for travel.

Using a carrot-and-stick approach, Delta on Thursday said it will cut advance-purchase fall fares by 30%, but then raise prices 5% above normal levels once the sale ends.

In a separate move, Continental Airlines will discount summer vacation prices by an average of 30% in a limited promotion that requires two people to travel together on the same trip. Under certain conditions, a couple can fly coast-to-coast round trip for $200 a person.

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Several other carriers moved to match the two discounts, but none joined Delta in announcing across-the-board price hikes beginning Sept. 1.

Industry experts said demand for airline tickets for summer and fall travel may have dropped as a result of the massive 50% fare sale in June.

“The earlier fare war attracted so many people that it stole from the future,” said Thomas Nulty, president of Associated Travel Management, a Santa Ana-based agency. The airlines “are trying some creative approaches to lure customers in. “

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Continental will offer coupons today in 75 newspapers that are good for two types of discount fares for travel through Sept. 13. Both sets of non-refundable fares require that two people travel together.

Under a weekend fare, each passenger pays $99 one-way for travel anywhere in the continental U.S. when they depart on a Thursday and Friday and return on the following Monday or Tuesday. A separate fare, ranging from $99 to $149 one-way, requires passengers to complete their trip in exactly seven days.

Continental had launched a summer fare sale earlier this month, but demand was apparently less than expected because the carrier had enough seats left over for a second summer promotion, agents said.

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“When (the Continental) sale went out, it didn’t raise a ripple,” said Jim M. Roberts, president of Uniglobe Regency Travel in Rancho Cucamonga.

Under the Delta promotion, which begins today and expires Aug. 31, the airline will reduce its 14-day advance purchase fare by about 30% for travel in the continental United States. The fare requires a Saturday night stay-over and travel must take place between Sept. 14 and Dec. 14. The sale does not apply to travel during the Thanksgiving holidays.

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