American, Delta get pinched by the rise of cheap airfares to Europe

Dallas

ALREADY under pressure from discounters at home, major US airlines are facing a tighter squeeze abroad as low-cost rivals ramp up service across the Atlantic.

At American Airlines Group Inc, a measure of trans-Atlantic fares just plunged 9.1 per cent, the most since right after the recession ended in 2009, as European budget carriers such as Norwegian Air Shuttle ASA added more flights. Delta Air Lines Inc also recorded a sharp drop in the same yardstick. United Continental Holdings Inc eked out a tiny gain.