American Airlines' plan to slash fares to woo back passengers scared off by last week's labour crisis will benefit local travellers, the airline's Bermuda representative confirmed yesterday.

Carol Decouto, American Airlines general manager in Bermuda, said the airline would be offering reduced-rate seats. There would also be free upgrades for the Advantage passengers until February 23, she said.

She could not provide specific details on fares last night, but the airline has announced fare cuts as deep as 50 percent.

An American Airlines jet touched down in Bermuda around 7.40 p.m. last night and is expected to fly back to JFK International airport at 7.10 a.m. today.

US President Bill Clinton ended a 24-minute pilots' strike at American Airlines on Saturday. But the entire issue could flare up again in 60 days time, the Associated Press reported yesterday.

The last 30 days cost the company more than $100 million, and maybe as much as $300 million.

A lot of seats remained empty after passengers fled the unrest and uncertainty. To win back business, American and American Eagle announced a fare sale with discounts of up to 50 percent on some fares and promised to double frequent-flier miles for its flights.

Almost immediately after Mr. Clinton's intervention, American cut fares up to 50 percent on 21-day excursion fares, 40 percent on portions of tour packages and doubled frequent flier mile credits.

United Airlines and Trans World Airlines Inc. matched American's new fares.

TWA said it had not decided whether to match the frequent flier mile offer.

Other carriers said they did not cut fares but would continue to study their options. Some already announced spring and summer sale fares earlier this month.

Mr. Clinton appointed a board to study the dispute. This has postponed the pilots' walkout for at least 60 days.

Although the pilot strike lasted a mere 24 minutes, American lost tens of millions of dollars as customers changed reservations to other carriers to avoid being stranded.

The fare sale seemed to be working yesterday.

American spokesman John Hotard said the airline's reservations system received thousands of calls on Saturday, about nine times higher than normal. Call volume was still heavy yesterday.

Hotard did not have exact numbers on how many people have taken advantage of the cheaper flights, but said the airline would have a better idea early this week.