Airfare price trend seen down in new year

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Airfare price trend seen down in new year

CHICAGO (Reuters) =97 Travelers looking for airfare deals after United=20
Airlines' bankruptcy filing may have to wait until after the holiday travel=
=20
season for the fare wars to kick in, industry experts said Tuesday. But=20
even with the prospect of fewer flights offered by various carriers next=20
year, fares can only go lower because there simply is not enough demand to=
=20
fill planes, they said. And low-cost carriers like Southwest Airlines and=20
JetBlue Airways Corp. threaten to gobble up the slim demand that does=20
exist. "Even with United (possibly) cutting back, the other airlines aren't=
=20
going to fill up. There are too many seats out there right now," said=20
airfare expert Terry Trippler of TerryTrippler.com. "Fares will probably go=
=20
down in January because there will be some type of sale to try to get=20
people on planes." United, the No. 2 U.S. airline and a unit of UAL Corp.,=
=20
has stressed that its flight service will not be disrupted by its Monday=20
bankruptcy filing, the largest airline bankruptcy ever.

In a statement issued Monday, United acknowledged that its restructuring=20
may result in route or service changes, but a United spokesman would not=20
offer any details on potential route changes or comment on the carrier's=20
airfare strategy. "We have said we're going to look at all aspects of our=20
company and our cost structure to look at ways we can operate more=20
efficiently, and I think we'll look at everything," United spokesman Joe=20
Hopkins said. "But it's premature to say what actions are going to be=20
taken." US Airways, the No. 6. U.S. airline, has cut back on its flight=20
schedule since filing for bankruptcy in August. Travel agents Tuesday said=
=20
they expect United will also trim flights in an effort to reduce costs.=20
"They're probably going to look to consolidate some routes that they have=20
as US Airways did during their reorganization period," said Alicia=20
Klosowski, a spokeswoman for corporate travel agency Rosenbluth=20
International Travel Management.

Travel agents said Tuesday they had not seen any lower fares sparked by=20
United's bankruptcy filing or an immediate rush to book on other carriers.=
=20
And a number of travel agencies have attempted to reassure nervous=20
passengers =97 as United has attempted to do itself =97 that United flights=
=20
will operate as usual. Klosowski said her agency has encouraged passengers=
=20
to continue booking on United. And online travel agency Travelocity has a=20
recorded message on its customer service line telling callers that United=20
flights are running as scheduled. "We still continue to book thousands of=20
passengers (on United) just like we did when US Airways went bankrupt,"=20
said Terri Shank, a spokeswoman for online travel agency Orbitz. "At this=20
point, we have seen absolutely no changes in the fares."

Several airfare watchers noted that most people already have their December=
=20
holiday travel plans in place, which makes early December one of the=20
slowest booking periods of the year. Still, with fewer seats offered as=20
airlines reduce capacity to cut costs in the months ahead, cheaper fares=20
will be snatched up more quickly, said Tom Parsons, chief executive of=20
online travel agency Bestfares.com. Parsons predicted that the number of=20
seats airlines offer by March will be down by about 20% compared with=20
levels two years ago. In October, domestic capacity =97 measured in=
 available=20
seat miles =97 was down 9% from 2000, according to the Air Transport=20
Association, the airline industry's trade group. "We could see some=20
bargain-basement deals in January and February, and United could be a=20
leader on that front," Parsons said. "They just want to get people on the=20
planes."


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