Airlines announce new cheaper faresDALLAS — American and United have started selling cheaper “basic economy” fares as they battle discount airlines for the most budget-conscious travelers.American announced early Tuesday that it began selling the new fares for flights starting March 1 on 10 different routes from its hub airports in Dallas, Miami, Philadelphia and Charlotte, N.C.Now United says it too is selling cut-rate tickets on some flights from Minneapolis to seven of its hub cities including New York, Chicago and Los Angeles.Basic economy fares are often $20 to $40 cheaper per round trip, but they come with severe restrictions — buyers are in the last group to board, and they can only carry a small item that fits under their seat.

Macy’s earnings drop nearly 13%NEW YORK — Macy’s, the nation’s largest department store chain, says its earnings for the quarter that includes the holiday period dropped nearly 13 percent as results were dragged down by lower sales, store closures and other costs.Macy’s said it would post another year of sales declines for a key revenue measure. Macy’s has also been under pressure from shareholders to get more value out of its real estate holdings.For the three months ended Jan. 28, Macy’s earned $475 million, or $1.54 per share. That compares with $544 million, or $1.73 per share, in the year-ago period.

UPS tests drone delivery optionUPS says its latest flying test shows the potential for using drones to make deliveries in rural areas.United Parcel Service said Tuesday that a drone launched from a specially outfitted truck, made a delivery and returned to the truck during a test this week in Florida.UPS has tested drones for emergency deliveries such as medicine. In the latest test, the drone made one delivery while the driver made another in the truck.