Airlines Stop Fare Cuts for Last-Minute Travelers

The major airlines, led by Northwest Airlines Corp. and AMR Corp.’s American, have called off a fare war that erupted this month over the highest-priced tickets, those for last-minute travel.

At the peak of the battle, some fares fell as much as 40%.

But over the weekend, published fares for tickets with no advance-purchase requirement were back to their old levels.

Northwest on Saturday restored its pre-Aug. 1 top business and coach fares but also said it would give 5% to 10% discounts for customers who buy tickets from a travel agent or directly from the airline.

American, UAL Corp.’s United, Delta Air Lines Inc. and Continental Airlines Inc. matched Northwest’s move to return business fares to their earlier, higher levels, while US Airways kept discounts on some routes, said Tom Parsons, chief executive of the travel site Bestfares.com.

At the same time it raised fares back to Aug. 1 levels, American kept 5% to 10% discounts for tickets sold through select travel agents, Parsons said.

American officials did not immediately return a call for comment.

While they lasted, the fare cuts were seen as making it harder for airlines to return to profitability.

The major U.S. carriers lost more than $1 billion in the second quarter.

Of the largest seven carriers, only Southwest Airlines Inc. has been profitable since Sept. 11.

Parsons said that although the deep fare-cutting appears to be over, business travelers tapping the travel agency discounts could still save as much as 10%, or $200 off the typical last-minute coast-to-coast fare.