U.S.

Fare Wars: United Strikes Back

By CBSNews.com staff CBSNews.com staff

September 14, 2000 / 10:40 AM EDT / CBS

Massive weather delays and labor troubles made this a turbulent summer for air travel.

Now, some airlines are cutting ticket prices in an effort to say "we're sorry."

Leading the way is United Airlines, which reduced fall fares substantially in an effort to win back business and shore up its image after three months of severe labor problems, delays and cancellations.

The world's largest carrier is cutting ticket prices on most of its domestic round-trip flights through Dec. 14 about 50 percent, while long-distance U.S. and international flights will be cut back less sharply.

"I think it's a very, very good thing whenever these sales come out," Bill McCoy of Budget Travel magazine said Wednesday."Because you're getting an airline ticket for less. It has no long-term ramifications. It's just a good deal."

At least seven other U.S. carriers had matched the sale by Wednesday morning, although some had more restrictions than United, which announced its fare cuts Tuesday.

"I see the marketplace as being increasingly price-driven where price is the only object," McCoy said.

The move comes less than a week after the nation's major airlines raised domestic fares by adding a $20 surcharge to cover the higher cost of jet fuel.

Sample round-trip fares include Boston-Denver for $288, Chicago-New York for $198, Los Angeles-New York for $598, Washington, D.C.-Orlando $198, New York-London for $228, Denver-Munich for $448 and Chicago-Frankfurt for $508.

Trying to lure more business to its Web site, United also said additional discounts will be given to those who book online at www.united.com.

Most airlines are giving customers until the Sept. 22 to buy the low fare tickets. United requires a seven-day advance purchase; there are no blackout dates and no fuel surcharge applies.

Airline expert Joe Brancatelli said the move reflects United's desperation at the extent of this year's problems. He said the airline gains no real advantage by launching a general fare sale since others matched it.

"They must have such a gigantic shortfall in traffic, they had no other choice," he said. "In August, with a 12 percent traffic decline, September and October and the whole fall must look disastrous" for the airline, he said. "So they had to do something drastic."

Travel analyst Terry Trippler of OneTravel.com said the United move was matched in some form by American Airlines, America West, Continental Airlines, Delta Air Lines, Northwest Airlines, TWA and US Airways.