January Air Fares Fall 16% From 2001

Fares at major U.S. airlines fell 16% in January from the year-earlier month as carriers reduced prices to lure back passengers after the Sept. 11 terrorist attacks.

The average one-way domestic fare fell to $122.89 from $146.51 in January 2001, said the Air Transport Assn. The average fare last month was up from December’s $117.79, which was the lowest level since 1989.

Airline revenue last month fell 27% from a year earlier, the same as in December, the group said.

In related news, UAL Corp.’s United Airlines said it will rehire 1,200 flight attendants laid off after the terrorist attacks as the second-largest carrier restores some flights because of rising demand.