Airlines slash fares
as much as 30%

The deep price cuts include
the Hawaii market

Bloomberg News

CHICAGO -- United Airlines, the largest U.S. carrier, cut U.S. and international leisure fares as much as 30 percent today, building on a sale started by Trans World Airlines Inc. to spur slow seasonal demand.

American, Delta, US Airways, and Continental airlines also joined in the sale, and Northwest Airlines offered an Internet fare discount. The discount tickets must be purchased at least 14 days in advance.

TWA's sale, announced yesterday, cut some ticket prices more than 50 percent. Though TWA's discounts applied only to North America, the Caribbean, Hawaii and Europe, United's sale added Asia. The airlines lowered fares for travel from roughly mid-January to mid-May, requiring purchase by Jan. 14 and at least 14 days ahead of the departure date.

"You've got almost the whole world on sale now," said Tom Parsons of Bestfares.com, noting that some foreign airlines also have begun discounting because of the slow travel period.

The carriers are looking to spur demand as they enter the slowest travel quarter. The lingering effects of reduced travel during the New Year's holiday period because of Year 2000 concerns also have spilled into this month.

"January looks a little soft, February is closer to a normal booking pattern," said PaineWebber Inc. analyst Sam Buttrick.