Continental Ends Deal With Carrier

Continental Airlines Inc. broke off a ticket-selling alliance with America West Airlines after the smaller company cut fares to draw last-minute travelers.

Continental decided to end the seven-year code-sharing agreement, which allows the partners to book tickets on each other’s flights, on May 1 because revenue from it “was approaching zero,” a spokesman said. An accord on frequent-flier benefits and airport clubs will end Sept.24.

America West on Monday cut fares as much as 70% on tickets bought shortly before travel and dropped a required Saturday night stay to lure more last-minute passengers--a main source of airline revenue.

Continental called that evening to say the alliance would end, said Scott Kirby, the smaller carrier’s executive vice president for sales and marketing.

Phoenix-based America West Holdings Corp.’s shares rose 20 cents to $5.55 on the NYSE. Houston-based Continental fell 2 cents to $27.85, also on the NYSE.