Continental Airlines Sets New L.A.-Denver Coach Fare: $149

Continental Airlines has slashed unrestricted, one-way fares between Los Angeles and Denver to $149 as part of its expanding Peanut Fare program.

The Houston-based carrier said the new fare is permanent and applies to all available coach seats. Travel agents said it is certain to stimulate traffic on the already busy Los Angeles-Denver route. Continental used to charge $456 one way for an unrestricted coach seat, and it offered a round-trip, 14-day-advance fare of $445.

United Airlines said it will match Continental’s prices, but only on a limited number of seats.

Continental said the $149 one-way coach fare and a $179 first-class fare will replace 22 previous fares on the route. A limited number of seats will be available for a promotion that allows a passenger to take along a companion for a penny. The companion fare must be reserved one day in advance and requires an overnight stay.

Continental is gambling that its Peanut Fares will stimulate enough traffic to offset the lower ticket prices. The nation’s fifth-largest carrier, which emerged from bankruptcy protection last year, is trying to cut its already-low operating costs to offer Peanut Fares at a profit.

The airline has introduced Peanut Fares in about 50 U.S. cities, Continental spokesman David Messing said.

Peanut Fares were introduced at Los Angeles International Airport about three months ago for flights to San Antonio, Tex., Messing said.