Airlines offer fare cuts

Http://muavere.com - Southwest Airlines Co. led six other major carriers in offering one-way fares as low as $30 to generate demand when the peak travel season wanes in September. The sale is Southwest's biggest nationwide reduction in 13 years.

Delta Air Lines Inc., American Airlines, United Airlines, Continental Airlines Inc., JetBlue Airways Corp. and US Airways Group Inc. joined Southwest in offering sale prices today and tomorrow for travel Sept. 9 through Nov. 18. The rates are $30 each way for flights as far as 400 miles, $60 for 400 to 750 miles and $90 for more than 750 miles.

Air traffic declined in the first half of 2009 as businesses reduced travel in the recession. Airlines have used discounts to lure passengers, and American has said the industry had only two nationwide fare increases this year.

"While airline ticket prices have stabilized recently from their free fall, airlines are by no means out of the woods as oil prices remain volatile and demand precarious," said Rick Seaney, chief executive of fare-shopping site Farecompare.com.

Delta, American, a unit of AMR Corp. and the other carriers matched the fares on competing routes, spokesmen said. The sale covers most of Dallas-based Southwest's 68-city route map, Seaney said.

Southwest's sale "is somewhat disappointing in that it suggests that bookings after Labor Day are weaker than would be considered normal for this time of year," said Helane Becker, a New York-based analyst with Jesup & Lamont Securities Corp.

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