After earning record profits in 1997, fares for major airlines are again on the rise

(CNN) -- Packing for a last-minute business trip? You're probably paying a hefty sum for your airline ticket.

"For the first time ever, we're seeing major north-south routes go over $1,000 and we're seeing major transcontinental routes go over $2000," said CNN business travel consultant Chris McGinnis, "and this is in coach."

Airlines raked in record profits in 1997, and there's no end in sight for rising business fares.

"In the airline industry, we believe fares are going to be up in the neighborhood of five to six percent ," said Eric Altschul of American Express. "That's on top of a huge increase we saw in 1997."

In fact, according to American Express, business fares rose almost 40 percent over the past two years.

Travelers can avoid pricey fares by using alternate airports -- like Midway in Chicago or Hobby in Houston -- where low-fare carriers keep prices in check. Other tricks are shopping the Internet for last-minute deals, or, as a last resort, staying over a Saturday night.

There's a bright side to increasing costs: Airlines say they'll reward their best customers -- those paying the highest fares -- with more perks like frequent flyer bonuses, preferred seating and special reservations phone numbers.

And not all costs are increasing: If you're traveling for fun and can plan ahead, you can take advantage of fares to Europe that are lower than they've been in years.

Last week Northwest and KLM offered extreme bargains to several European cities -- and now other airlines are matching them. From the East Coast you'll pay less than $300 round trip, and under $350 from West Coast cities.

"Last summer as you recall the planes were bulging at the seams full of passengers, so there's a lot of equipment on those routes now that the airlines are trying to keep full this winter," said McGinnis.

To get these deals, you must buy tickets within the next two weeks for travel between now and mid-March.

Based on a report from CNN's Business and Travel and Beyond. The segment appears Monday through Friday on Daybreak at 5:30 AM (ET) and on Early Edition at 7 AM (ET). BT&B also airs Sundays on the World Today at 10 PM (ET).

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Related stories:

• How much does travel really cost? - May 26, 1997
• Business, leisure trends to continue on upswing in 1998 - December 30, 1997
• Airplanes may get a class upgrade - November 7, 1997

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• Best Fares Discount Travel Magazine online
• WebFlyer: InsideFlyer online

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