Major Carriers Drop Air Fares for Fall Travel

Several major U.S. airlines on Tuesday cut fall fares by 15% to 30% as peak summer travel tapers off.

The sale, introduced by UAL Corp.’s United Airlines, the nation’s largest airline, offers discounts on most routes in the U.S. and Canada and applies to flights between Sept. 7 and Dec. 17.

Continental Airlines, AMR Corp.’s American Airlines and US Airways were among the major carriers that matched the sale.

“If there’s anything unusual about this sale, it is that it comes right on the heels of a similar sale that expired a week to 10 days ago,” said PaineWebber analyst Samuel Buttrick.

The sale comes after three broad-based fare increases this year. Analysts said airlines have been forced to offer discounts from those fares to keep bookings up while competing against low-fare carriers.

Airlines also are adding a record number of planes this year, expanding capacity faster than the economy is growing.

“The net result of it is that while posted fares are up, the average fare paid is down as more consumers and businesses shop sales,” Buttrick said.

Delta Air Lines Inc., the nation’s third-largest carrier, said it matched United’s sale and extended its sale on Labor Day travel for an additional week.

Besides the sale on North American routes, United cut fall fares for international travel during off-peak times on select routes. The airlines said all sale tickets require a 14-day advance purchase, a Saturday night stay and must be bought by Sept. 3.

United’s discounts include a $416 round-trip fare from L.A. to New York and $588 from Chicago to Frankfurt, Germany.

In New York Stock Exchange trading, United shares rose 63 cents to close at $62.25; while Continental advanced $1.50 to close at $41.13; AMR rose $1.25 to close at $62, and US Airways climbed 44 cents to close at $34.38. Northwest fell 6 cents to close at $31.63 on Nasdaq.