Aviation: Fares Down, Passengers Up

The transatlantic airlines are flying higher now than at any time since they introduced tourist-class fares in 1952.

Next week fares over the North Atlantic will be cut 20% in both first class and economy—and for trips of 21 days or less, to as low as $264 round trip New York to Shannon. The response to the reductions has startled even the airline executives. So many passengers have already booked trips that Pan American World Airways estimates that revenues of the transatlantic lines this year will rise $500 million.

Compared with last year's reservations for flights from April 1 to July 1, Pan Am's bookings to Europe are up 30% and TWA's 58% . Even more spectacular is the surge in reservations for flights to the U.S.; Alitalia and BOAC both have increases of more than 100% , while Air France, SAS, KLM, Lufthansa and Swissair have gained 12% to 30% . Airline executives expect a record number of tourists to be attracted to the U.S. by the bargain fares, coinciding as they do with the opening of the New York World's Fair.

The airline uptrend is likely to level off during the ten-week "peak" summer season, when economy fares will temporarily climb back to almost what they are now. But the gamble on lower rates for most of the year has already paid off, and has major implications for the supersonic future. By assuring most airlines of setting new passenger records this year, it adds fuel to the argument of some airmen that the best way to get passengers up is to bring all fares down.