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Air-fare war ahead?
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May 14, 1998: 3:18 p.m. ET
Carrier drops summer rates up to 25 percent, following Northwest's move
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NEW YORK (CNNfn) - In what may be the makings of a summer air-fare war, Continental Airlines said Thursday it is slashing its summer rates by up to 25 percent to remain competitive.
The announcement comes less than 24 hours after Northwest Airlines announced a similar rate reduction for the warmer months ahead.
Continental, a Houston-based airliner, said it will lower by up to 25 percent its structured off-peak fares and it will take up to 15 percent off its peak fares for summer travel in select markets within the U.S., Alaska, Hawaii and Canada.
"This was a competitive response for us," said Continental spokeswoman Julie Gardner. "The summer season is usually pretty busy."
Continental's discount prices are good for travel between May 28 and Sept. 8, but tickets must be purchased 14 days in advance and before May 22.
Late Wednesday, Northwest cut off-peak fares by up to 29 percent for certain routes, including Phoenix, Boston and Washington, ranging from $69 to $199 each way, based on round-trip purchase. The carrier has the same deadline for purchasing tickets.
The deal is good for travel between May 28 and Sept. 8.
Last month, Continental reported record first-quarter profit, beating analysts estimates by 6 cents a share. The company attributed its jump in earnings to higher seating capacity, soaring revenue and lower fuel costs.
Northwest Airlines Corp. announced in January it would acquire a controlling stake in Continental. The two also signed a global strategic alliance, including code-sharing and frequent flier reciprocity.
-- from staff and wire reports
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Continental
Northwest
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