HEADLINE NEWS.

Readers of Travel+Leisure magazine have recognized Milwaukee-based Midwest Airlines as "Top Domestic Airline for Service" for 2004. The magazine's subscribers annually select the world's best services and places, and have named Midwest Airlines the top service provider both years this award has been given. Midwest Airlines topped the domestic airline category with a score of 79.90. Runners-up were:

* JetBlue Airways (78.57)

* Alaska Airlines (67.33)

* Southwest Airlines (66.89)

* Hawaiian Airlines (64.79).

A list of the winners in the hotel, cruise line and international airline categories can be found at http://www.travelandleisure.com and in the June issue of Travel+Leisure, now available on newsstands. Rankings are based on reader evaluations collected in the 2003 World's Best Awards Survey. For airlines, scores are indexed averages of evaluations for the characteristics "customer service" and "in-flight service." Scores were rounded to the nearest hundredth of a point.

The Travel Industry Association of America says the U.S. should be prepared for long lines, delays and gridlock this summer, when it expects leisure travel to rise by 3.2 percent from last summer. Suzanne Cook, TIA's senior vice president of research, says, "For the first time in years, the summer travel season will start off with a bang, and we expect it to stay strong through August." Consumers, however, are concerned with rising prices of travel. But Sandra Hughes, vice president of AAA Travel, believes rising fuel costs will not stop driving vacationers. AAA predicts a record number of Americans will travel for the Memorial Day holiday; its agents say they are seeing dramatic increases in travel interest for this spring.

Air New Zealand has signed agreements to acquire eight new Boeing 777- 200ER aircraft and two Boeing 7E7 aircraft, as well as the rights to buy an additional 42 long-haul airplanes, pending shareholder approval. The aircraft will enable the carrier to stretch its wings in the long-haul marketplace. " These aircraft will allow us to develop new routes and increase frequency on existing routes, as well as provide an overall increase in both passenger and cargo capacity," says Ralph Norris, managing director and chief executive. Norris adds that putting a new fleet in place will mean lower operating costs and better financial performance than the carrier would realize by expanding its existing fleet of 10 Boeing 767s.

AirTran Airways launched June 7 2004 a 36 hour sale for flights to all 45 destinations with fares starting as low as $39 each way. Travelers may purchase these sale fares at airtran.com, through travel agents or via AirTran Airways' reservations system at 1-800-AIR-TRAN. For Spanish, call 1-877-581-9842. These special fares are available for purchase through 11:59 pm (ET) June 8, 2004, are good for travel through November 2, 2004, and are not valid for travel on Fridays and Sundays. Like all AirTran Airways fares, prices included in this sale are one-way tickets and do not require a roundtrip purchase or a Saturday night stay.

AirTran Airways began June 5 2004 two new daily nonstop flights between Akron-Canton Airport and Boston's Logan International Airport and two new daily nonstop flights between Newport News/Williamsburg Airport and Boston's Logan International Airport. The announcement comes at the beginning of a big week for AirTran Airways, as the low-fare provider is accepting delivery of the first of 100 new Boeing 737-700 aircraft on Wednesday, June 9. AirTran Airways already operates the youngest all- Boeing fleet in the United States, and this summer XM Satellite Radio will be added to all its aircraft.

Alaska Airlines began daily nonstop roundtrip service on June 7 2004 between Los Angeles International Airport (LAX) and Washington, D.C.'s Reagan National Airport, becoming the only airline to fly the route. The carrier is using a Boeing 737-700 on this route.

America West Airlines announced on June 2 2004 that members of FlightFund, the airline's award-winning frequent flyer program, who fly two roundtrip nonstop flights from Los Angeles (LAX) to Boston, New York/JFK or Washington, D.C./Dulles can earn a companion pass to one of nine nonstop destinations originating from Los Angeles (LAX). The companion pass may be used to take a friend to any of the following America West destinations: Boston; Edmonton, Alberta; Las Vegas; Mazatlan, Mexico; New York/JFK; Phoenix; Puerto Vallarta, Mexico; Vancouver, British Columbia; and Washington, D.C. To qualify, the two roundtrip flights from Los Angeles must be completed by Nov. 15, 2004. The companion pass to any of the nine destinations from Los Angeles is good for travel from May 24, 2004 through Feb. 16, 2005. Blackout dates apply from Dec. 16, 2004 through Jan. 5, 2005. Customers must pre- register at www.FlightFund.com/lax for this promotion before booking travel. Tickets for Los Angeles to Boston, New York (JFK) or Washington, D.C. (IAD) can be purchased online at www.americawest.com or by calling 1-800-2-FLY-AWA. After the two qualifying roundtrip flights are complete, members will receive an e-mail containing a special "e- Certificate" and instructions on how to redeem their companion pass. Tickets from Los Angeles utilizing the companion pass to the nine specified destinations must be purchased online.

AAdvantage members now can earn miles when they sign up for Internet service from EarthLink, including dial-up, wireless e-mail with BlackBerry(r), and DSL or cable high- speed Internet. Members who sign up for EarthLink Internet service before Aug. 31, 2004, will earn 10,000 AAdvantage miles, and after that date, members will earn 6,000 miles.

American Airlines and Cinemark announced on June 1 2004 the launch of a unique summer promotion that offers Cinemark moviegoers AAdvantage miles with the purchase of Coca-Cola fountain beverages. The promotion offers Cinemark patrons 300 AAdvantage miles with the purchase of three large Coca-Cola fountain drinks at any of Cinemark's 188 U.S. theaters in 33 states. After earning 300 miles customers are automatically entered for a chance to win one of five 50,000 AAdvantage mile awards. Each subsequent purchase of a large Coca-Cola fountain drink also earns an additional 100 AAdvantage miles.

American Airlines through its AmericanAirlines Vacations program is offering 10,000 AAdvantage bonus miles per booking on vacations booked June 1 through July 31, 2004, for travel between July 1 and Dec. 15, 2004. Simply purchase a five-night or longer Mexico vacation at select hotels and resorts in Cancun/Riveria Maya, Cozumel, Ixtapa, Los Cabos or Puerto Vallarta and earn 10,000 AAdvantage bonus miles. In addition to accommodations at leading hotels, specially priced "tour" airfares in Coach and Business Class are available when booking AmericanAirlines Vacations packages to Mexico. Plus, Alamo(r) car rentals and optional sightseeing tours are available. For information and reservations on a vacation that is as individual as you are, contact your travel agent, call AmericanAirlines Vacations at 800-321-2121 or visit www.aavacations.com/miles

ATA announced June 7 2004 plans to provide an additional round-trip flight, six days a week, between Chicago- Midway International Airport and Guadalajara, Mexico. Customers can take advantage of the increased service, from seven to 13 flights per week, beginning June 10, 2004. ATA began service to Guadalajara in 2001 with one round-trip flight per day between Chicago-Midway and this popular business and leisure destination. ATA's "Easy Days Sale" for travel to/from Washington, D.C. Fares start as low as $69* (off-peak, each way based on a round-trip purchase) and are available for purchase today until midnight (E.D.T.) on June 10, 2004 for travel. Travel to/from the Rocky Mountain city, fares start as low as $79* (off-peak, each way based on a round- trip purchase) and are available for purchase today until midnight (E.D.T.) on June 10, 2004 for travel between June 22, 2004, and September 30, 2004.

British Airways last week introduced a new improved food service in Club Europe. The move coincides with the completion of a refurbishment of the Heathrow T1 executive lounges including the addition of a premium class check-in area, self-service check-in kiosks, and an exclusive security channel. Whilst the full English breakfast will remain a popular choice the airline will introduce a new continental breakfast option and a hot panini on its midrange European flights to destinations such as Frankfurt, Geneva and Lyon. On longer short haul flights, including Stockholm, Barcelona and Lisbon, customers will be offered two hot meal choices for dinner and lunch, plus a further salad option for those wanting a healthier meal. As well as improved quality and choice, customers will also notice a change of presentation with menu cards, white linen tablecloths and new round china plates, replacing the existing 'airline' style dish. www.ba.com

China Southern Airlines, www.cs-air.com/en, announced that it will be launching new Guangzhou-Beijing-Dubai service, starting Thursday, June 17 2004. The new Boeing 777 service (China Southern flight numbers CZ331/332) will depart each Tuesday and Thursday from Guangzhou at 18:20, arriving at Beijing at 21:05, then departing from Beijing at 22:20 and reaching Dubai next day at 03:40 a.m. (local time). With return flights every Wednesday and Friday, departing from Dubai at 05:00 a.m. (local time) and arriving at Beijing at 18:00 before reaching Guangzhou at 23:00.

China Southern Airlines, www.cs-air.com/en, the largest airline in The People's Republic of China, announced that it has signed a code share agreement with Korean Air for service between Incheon and Shenyang. The signing ceremony took place today at the Incheon Hyatt Regency Hotel with Mr. Young-Ho Kim, president of Korean Air Passenger Division, and Mr. Li Kun, Vice President of China Southern Airlines, representing their respective carriers. Effective August 8 2004, Korean Air and China Southern Airlines will be able to provide the flexible flight schedules to their loyal customers. Currently, Korean Air is operating total 70 weekly flights to China and 11 weekly flights between Incheon and Shenyang while China Southern Airlines is operating total 12 weekly flights between these markets. The code share agreement practically enables both carriers to ensure a total of 23 weekly flights between these two cities, respectively.

Continental Airlines and Maersk Air of Denmark began codesharing June 5 2004 on flights between the Danish cities of Copenhagen and Billund and London/Gatwick and between Billund and Amsterdam, enabling quicker and easier connections to and from Denmark for Continental customers. A marketing agreement between the two airlines also provides benefits for members of Continental's frequent flyer program, OnePass.

Delta Air Lines dances the "merengue" as it launches new service on June 1 2004 from New York's John F. Kennedy International Airport (JFK) to Santo Domingo, Dominican Republic. To celebrate its first entry into the Caribbean nation, Delta is offering double miles to SkyMiles customers who purchase and fly qualifying segments on Delta-operated flights from JFK to Santo Domingo between June 1 and Aug. 31, 2004. Delta will operate two nonstop flights daily between JFK and Santo Domingo using Boeing 757-200 aircraft, with the capacity to carry up to 183 passengers in a two-class configuration.

Delta Connection carriers Atlantic Southeast Airlines (ASA) and Comair are increasing summer travel options for customers by adding new nonstop jet flights between Delta's Atlanta and Cincinnati hubs and five popular regional destinations. By July 7 2004, Comair will add one additional daily round-trip jet flight between Cincinnati and Akron/Canton, Ohio; Greensboro/High Point/Winston-Salem, N.C.; Portland, Maine; and Savannah, Ga. Effective July 1, ASA will add an additional round-trip flight (operating Sundays through Thursdays) between Atlanta and Chattanooga, Tenn. All new service will be operated with Bombardier CRJ regional jets.

Frontier Airlines which has served Mexico non-stop from Denver since December 2002 and is currently the largest carrier to Mexico from Denver, is now offering a once-in-a-lifetime low price to visit the most beautiful and unspoiled beaches of Mexico. For just *$89 each way you can visit Ixtapa/Zihuatanejo (ZIH) nonstop from Denver (DEN).

Northwest Airlines announced ton June 3 2004 that it has added French language capabilities to its www.nwa.com Web site.

Southwest Airlines is celebrating ten years of service in both Seattle/Tacoma and Spokane this week! Festivities will kick off Thursday, June 3 2004, in Spokane and Friday, June 4, in Seattle/Tacoma. "Our Employees have made both Seattle/Tacoma and Spokane key players in Southwest's Northwest market," said Dave Ridley, Southwest's vice president of ground operations. "We are pleased to bring our legendary low fares and our great Customer service to our Washington Customers year after year."

Swiss International has decided the first week of June 2004 not to proceed with the envisaged integration of its Swiss TravelClub frequent flyer program into the Executive Club, its counterpart at British Airways, under the present conditions. The sizeable costs of such an integration and the drawbacks it would bring currently outweigh its projected mid- to long-term benefits. As the abandonment of the proposed integration also means that the bilateral agreement between SWISS and British Airways cannot be put into practice, Swiss is unable to join the oneworld alliance at the present time. Swiss and British Airways have reached an amicable agreement on how they now intend to proceed. Swiss's bilateral commercial agreements with other oneworld members remain unaffected by these developments.

United Airlines announced on June 3 2004 that it will offer introductory fares as low as $60 each way* based on required roundtrip travel, and a double miles bonus offer for new seasonal service this summer from United's hub at Denver International Airport (DEN) to Yellowstone Regional Airport (COD) in Cody, Wyoming. New service will operate from June 3 to September 30, 2004.

United Airlines launched on June 3 2004 its daily nonstop service between Washington/Dulles International Airport (IAD) and Zurich, Switzerland (ZRH), becoming the only airline to offer daily nonstop flights between the two cities.

United Airlines reinstated on June 3 2004 daily nonstop, transcontinental service between Sacramento International Airport (SMF) and its Washington, D.C., hub at Dulles International Airport (IAD). The new Washington, D.C., service complements United's existing 29 daily nonstop flights from Sacramento to its other U.S. hubs in Chicago, Denver, Los Angeles and San Francisco, as well as to Eureka, Calif. The airline also relaunched its daily nonstop service between Chicago O'Hare International Airport (ORD) and Honolulu (HNL). The new Chicago service will complement United's existing 24 daily nonstop flights to Hawaii from its other U.S. hubs in Los Angeles, San Francisco and Denver.