Posted on: Saturday, December 1, 2001

Business airfares still sold at discount

Associated Press

CHICAGO — The biggest U.S. airlines have extended the deadline on business fare discounts well into 2002, seeking to revive slumping sales among their highest-paying passengers.

The move was announced yesterday by United Airlines for two of its discount offers and quickly matched by its main competitors. American, Continental and Delta followed suit, just as they did when United originally introduced the discounts on Oct. 1. Northwest already has a similar plan.

United said it was pushing back the travel deadline to March 31 from Dec. 31 on two lower-fare options. One offers 50 percent off the current unrestricted business fare with a 21-day advance purchase and a one- or two-night minimum stay; the other would give 25 percent off with a 10-day advance purchase.

Neither requires a Saturday-night stay — a stipulation many carriers have eased in an effort to win back business travelers.

"These 'Back to Business' fares have been well received by our customers," said Patricia Mash, vice president of revenue management for United.

Air traffic has not been recovering as fast as airlines had hoped after the Sept. 11 attacks. American and United, the top two carriers, each have been losing $15 million a day, in large part because of a steep falloff in high-end business fares that account for 48 percent of its revenue.

United, the second-biggest U.S. airline, offers about 1,650 flights a day — scaled back from about 2,400 before the attacks.

The discount deals are similar to existing, regular offerings from Northwest Airlines, although Northwest spokesman Kurt Ebenhoch said the Minneapolis-based carrier would match United's offer in any market where its BizFlex fares don't exist.