Delta Air Lines announced that it is cutting its airfares by as much as 50 percent for…
Delta Air Lines announced that it is cutting its airfares by as much as 50 percent for travel in the continental United States.
The new fare program, SimpliFares, includes six fares in coach and two in first class. Last-minute purchases will cost no more than $499 each way in coach, and no one-way first class fare will be more than $599. Additionally, Saturday-night stays will no longer be required.
The company said that it will also unveil other changes, including improving its Web site, revising the food it serves aboard its flights and redesigning its aircraft cabins to make them brighter and give them all-leather seats.
There has been speculation that other carriers will be forced to match Delta`s changes, hurting industry revenue this year.
Calling the Delta move an industry event, Lehman Bros. analyst Gary Chase predicted other giant airlines – especially American, Continental and Northwest – will be forced to match, and will see revenue fall.
Delta averted a bankruptcy filing in October when its pilots agreed to accept lower-cost employment terms. Three major airlines are currently under bankruptcy protection.
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