ATA says eliminates fuel surcharge

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INDIANAPOLIS, June 10 (Reuters) - Low cost carrier American Trans Air Inc.
(ATA) said on Monday it has eliminated a fuel surcharge on flights inside
the continental United States and cut listed walk-up fares used most often
for business travel.

ATA, a unit of No. 10 U.S. carrier ATA Holdings Inc. (AMTR), warned on
Friday that it expected to report an operating loss in the second quarter
and for the year because competition for passengers had forced fares too
low.

So-called temporary fuel surcharges have been in place for more than two
years now and removing the charges will lower fares and is more significant
than the fare restructuring, said Tom Parsons, Bestfares.com chief
executive.

ATA said a simpler fare structure cut listed airfares by 25 percent to 40
percent. Carriers have been forced since the Sept. 11 attacks to offer fares
below those list prices because of weak demand for air travel.

The fare restructuring is the second aimed at walk-up fares after America
West Airlines in March, Parsons said. Walk-up fares can be much cheaper in
general on ATA, America West, the No. 8 U.S. carrier and a unit of America
West Holdings Corp. (AWA), or Southwest Airlines (LUV) than on the larger
major hub carriers, he said.


©2002 Reuters Limited.

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