Posted on: Tuesday, June 25, 2002

Airline won't issue paper tickets after '03

By Jeff Green
Bloomberg News

FORTH WORTH, Texas — AMR Corp.'s American Airlines plans to stop issuing paper tickets by the end of 2003 and start charging a $20 fee for them immediately if buyers qualify for an electronic version, in a cost-cutting move.

The world's largest airline said it will eliminate paper tickets for U.S. flights by March and for non-U.S. flights by the end of next year.

American plans to have self-service ticket machines in 70 of its 170 U.S. airports, double the current number, spokesman Todd Burke said. He said he didn't know how much the increase would be from the current total of 221 machines.

American and other major U.S. carriers have lost billions of dollars since the Sept. 11 terrorist attacks as air-travel demand declined and the airlines cut fares to lure back passengers.

Continental Airlines Inc. in November said it would charge $10 to cover processing costs if customers choose paper tickets when an electronic version is available. Northwest Airlines Corp. earlier this month also added a $10 fee for paper tickets on leisure fares if an electronic version is available.

American's ticket change is part of the carrier's "re- examination and refinement of its business model," an effort Chief Executive Officer Don Carty said earlier this month is aimed at saving money to stem losses. The company didn't say how much the move is expected to save.

Experts said the Fort Worth, Texas-based airline may be the first major carrier to switch to all electronic ticketing.