Most expensive fares cut

Thursday, Aug. 22, 2002 | 11:30 a.m.

DALLAS -- Southwest Airlines Co., the largest discount carrier and the No. 1 carrier in Las Vegas, reduced its highest one-way ticket price 25 percent to $299, sharpening fare competition as larger U.S. rivals cut service to try to stem losses.

Today's cut from $399 applies even to tickets bought at the last minute, Southwest said. Airlines usually charge much higher prices for tickets bought just before travel, which are sold mainly to business passengers. Southwest's highest fare is available on 36 percent of its routes and currently is paid by 1.3 percent of passengers, the airline said.

The discount carrier "is basically trying to win over business travelers who have never flown Southwest," said Nick Redfield, an analyst at Banc One Investment Advisors. The fares largely were in Chicago and Baltimore, where Southwest recently began or soon will start longer flights, he said.

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