Latest Round of Air Fare Cuts Spreads

American Airlines and USAir on Friday countered Continental’s $198 round-trip fares with less-restrictive and, in some cases, cheaper prices good through Tuesday.

Continental responded by dropping some of the restrictions and prices of the fares it announced Thursday for travel the rest of the summer.

Continental on Friday placed coupons in newspapers that entitle passengers to fares as low as $198 round trip on coast-to-coast routes before Sept. 13.

But Continental requires a Saturday night stay and at least two people to travel together. It also exempted routes between Florida and cities in the Northeast and Midwest.

American and USAir dropped the coupon and the companion requirements in their fare specials. But the two carriers differed on where they set fares, and competitors followed one or the other.

USAir adopted the multilevel pricing that Continental set. Passengers on Tuesday, Wednesday or Thursday could fly for $198 round trip. Those on Friday, Saturday, Sunday or Monday could fly for $238.

America West matched the USAir plan.

American lowered all its seven-day advance round-trip tickets purchased by Tuesday to $238, the middle of the three prices set in Continental’s special. The change was done within American’s four-tiered fare structure.

Round-trip tickets already less than $238 will not change. Flights to and from Florida are not covered in American’s special, which United Airlines and Northwest Airlines said they would match.

But Northwest kept the companion restriction, saying passengers had to fly with a teen-ager or child to qualify for its special.

Trans World Airlines said it was still studying the alternatives. Delta Air Lines officials could not be reached.