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Monday, November 22, 2004
USA Today
Business airfares, down 11%, might be lowest ever

Toppled by the rise of discount airlines, the average airfare paid by U.S. business travelers has fallen to what might be its lowest point ever.

The $217 one-way fare, measured for the July-September period by travel giant American Express, is 11% below the full-year average for 2003, and 16% off the recent peak year of 2001, according to a report to be released this week by American Express unit eClipse Advisors.

The figure is the lowest in five years of quarterly tracking, and eClipse's Michael Boult says it's likely the lowest ever on an inflation-adjusted basis. The company tracks fares actually paid by American Express' business-travel customers, who generally pay more than leisure travelers because they buy on shorter notice and seek more amenities. Boult says the data suggest pricing of business travel by airlines is undergoing a fundamental change. "The impact of low-cost carriers is really now taking hold," he says.

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