prime source of big-spending visitors.

The summer service from Dulles airport, Washington, will not re-start this season, announced company chairman Mr. Stephen Wolf with "regret''.

He said the move was made in the light of United's continuing operating losses, which have led to a $400 million package of cuts.

He hoped the service would resume in the future.

Tourism Minister the Hon. C.V. (Jim) Woolridge said the ministry had been talking to United about the service for months.

"Although they are still very interested in serving Bermuda, the past year has taken a toll on the airline's entire operation.

"We are now speaking with our other travel industry partners about the possibility of their providing some supplemental service to offset this loss of service out of Dulles.'' The daily United flight was hailed as major boost for tourism when it began in 1991, two years behind schedule.

It pulled in wealthy visitors from Washington and Virginia, and tapped into United's network across the US.

But flights in the peak season last year were only slightly more than half full.

And with United also cutting flights coming into Dulles, the service would have had less potential.

United spokesman Mr. Joe Hopkins told The Royal Gazette the decision was an economic one, taken after company losses of $332 million in 1991 and $166 million in the first nine months of 1992.

Figures for the last part of 1992 are expected to show more losses, he said.

As well as cutting flights the company was postponing delivery of new aircraft and laying off workers.

United had been hit by the global recession, the world surplus of aircraft seats and US fare wars, he added.

"It's been a very tough period for us. Mr. Wolf said he had held off long enough, and had to take some steps.

"We were not in the marketplace with the Bermuda service all that long, and it takes a little time to establish your identity.'' Mr. Woolridge added that even with the "suspension'' of the United flight, the Island would still have as many scheduled airline seats this season as it did last summer, because of the new USAir service from Boston.

And Bermuda will have more capacity this April than it did the year before, he said, thanks to American Airlines starting their summer service earlier.

Tourism officials are hoping Washington visitors will instead fly USAir from nearby Baltimore/Washington airport.

The Baltimore flights were around 70 percent full at the peak of last season.