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Continental Cuts Fall Fares to 13 U.S. Cities : Airlines: American, United and Delta say they will match some or all of the reductions, which average 25%.

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TIMES STAFF WRITER

Continental Airlines triggered a limited fare war on Tuesday as it lowered domestic fares for flights this fall to or from 13 U.S. cities, including San Francisco and San Diego.

The fare cuts, averaging 25% on selected routes, came one day after Continental cut fares to five European destinations by an average of 35%. American, United and Delta airlines said they would match some or all of Continental’s lower fares.

The fare reductions were viewed as an attempt by money-losing Continental to boost traffic on its weakest routes while keeping recent fare hikes intact. In recent months, the airlines have raised most one-way domestic fares between $10 and $40 to recover money lost during last summer’s vicious fare war.

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The summer fare battle produced losses at virtually every U.S. airline, but Continental--which is in bankruptcy proceedings--suffered more than others.

Analysts said the fare cuts were fairly modest. Daniel A. Hersh, an airline analyst with Kemper Securities Group in Denver, said the cuts could presage lower domestic fares ahead. If advance bookings for Christmas travel don’t pick up as expected after the elections, he said, airlines may slash fares to stimulate travel.

For now, only people traveling to mostly out-of-the-way domestic destinations will benefit from the lower fares. Other cities included in the fare sale are Allentown, Pa.; Albuquerque; Boston; Buffalo, N.Y.; Kansas City; Sacramento; San Jose; Seattle; Portland, Ore.; Tucson, and Worcester, Mass.

The reduced domestic fares apply to tickets bought on or before Monday and at least seven days before the trip starts. They are available for travel from Nov. 2 to Dec. 15, excluding Nov. 24, 25, 29 and 30, the four busy travel days around Thanksgiving.

Under the promotion, the cost of a round-trip ticket between Los Angeles and Boston will drop to $398 from $530. A round-trip fare between Los Angeles and Kansas City will fall to $198 from $258.

The European fare cuts apply to London, Paris, Frankfurt, Munich and Madrid flights. The reductions put fares from Los Angeles to those European cities at $498 for round trips made from Dec. 27 through March 20. The regular fare ranges from $528 to $628.

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The European fare cuts apply only to tickets purchased at least 14 days in advance and require a Saturday night stay. Deadline for purchases is Dec. 31.

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