Travel News: Fares to US go sky high

The Bermuda II treaty that constricts flights from Heathrow to US airports has 10 more months to run before the "Open Skies" agreement comes into effect. At present only two US and two UK airlines may fly between Europe's busiest airport and the US: American, United, British Airways and Virgin Atlantic.

With competition still stifled, fares across the Atlantic this summer are soaring. At weekends in July and August, fares for the benchmark Heathrow-New York JFK route are reaching £700 return on these four carriers, and rising.

The very cheapest London-New York fares travelling out on peak dates such as 21 July, back on 4 August, are for connecting flights via Montreal or Toronto on Air Canada, typically £475 through www.expedia.co.uk.

In addition, though, two "ethnic" carriers are allowed to sell tickets for non-stop flights from Heathrow that are continuations of intercontinental routes.

Air India serves JFK daily, with peak fares at £577 return through www.travelocity.co.uk for departures on 21 July, returning 4 August. In addition, Kuwait Airways operates to New York JFK; note that the airline is "dry".

Tickets on these airlines tend to be less restrictive, without the usual insistence on a Saturday-night stay for cheaper fares.

Air India also has a thrice-weekly flight to Chicago. The Indian carrier has good business-class deals, charging £1,247 return to Chicago when booked through www.airindia.com. This is about £40 less than Virgin Atlantic's Premium Economy on the same date.

To Los Angeles, Air New Zealand has daily non-stop flights from Heathrow. An economy ticket is available on peak weekend dates in summer for under £800 through www.opodo.co.uk, significantly less than other non-stop flights on BA, Virgin, United and American Airlines.

The gap between economy and business fares is narrowing for travel in July and August. BA has unveiled some bargain fares for Club World tickets to North America. You can reach California for £1,598 return through www.ba.com - less that twice the airline's economy fare. In retaliation, Virgin Atlantic will this morning match the fare with an Upper Class seat sale from Heathrow to LA.