Posted on: Tuesday, September 3, 2002

Travel fears lead to more fare cuts

By Chris Woodyard
USA Today

Travel jitters and a poor economy are translating into cheap airfares around Sept. 11 and beyond.

The fare-cutting comes amid a steep industry downturn that could push more airlines into bankruptcy reorganizations.

Already, US Airways has filed, and United Airlines has said a filing is possible this fall.

"The whole month is bad for airlines," says Tom Parsons, CEO of Bestfares.com. "The deals not only include Sept. 11, but go past it."

What is causing trouble for airlines?

• Weak bookings. Sept. 11 bookings are off 25 percent so far from a normal Wednesday on Orbitz, a top travel-booking site. Some airlines have cut their flight schedules because of expected low demand that day.

• Traveler fears. A Travelocity poll of about 1,000 travelers found 20 percent either are too afraid to fly or are still nervous about flying nearly a year after the attacks.

• Fare cuts. The lowest fares were cheaper on Sept. 11 than the week before, according to a study conducted by FareChase for USA TODAY, on 18 of 20 popular domestic and international routes checked. Prices stay the same or lower the following week.

While fares are generally cheaper on bookings made farther in advance, the traditional end of the vacation season and a weak economy that has slackened demand are exacerbating the decline.

Although airlines are not holding official fare sales for the week of Sept. 8, "there's definitely the opportunity to get a low fare," says Mike Sands, Orbitz's chief marketing officer.

Low fares are contributing to airline industry losses expected at upwards of $6 billion this year. To eke out more revenue, airlines such as US Airways have tightened restrictions on cheap tickets. And United announced new steps last week that include higher prices for class upgrades.

Sept. 11 is expected to be such a slack travel day that two small carriers, Spirit and National, gave away or charged $1 for tickets that day.

Fear of another attack coupled with the end of vacation season should make for bargains galore in September and October.

"This is a slow time of year for airlines. You can almost set your watch to the fare sales they are going to have," says Thom Nulty, president of travel agency chain Navigant International.

Parsons says $198 coast-to-coast round trips are being offered in some markets. Airfares are cheap, too, to Mexican resorts and Europe.