NEW YORK, FEB. 10 -- British Airways today cut round-trip airfares by 33 percent for flights between the United States and Britain and said it would give refunds with two weeks notice.

The move addresses fears of terrorism related to the Persian Gulf War, which began last month.

"We recognized the need to answer consumer concerns," said John Wood, British Airways's top marketing official in the United States. "Our Cash Back fare allows customers the option of a super deal, while at the same time protecting their investment if world events do not improve."

Trans World Airlines Inc. spokesman Donald C. Morrison said TWA is "looking at what they {British Airways} are doing and will remain at least competitive, if not more so."

Pan Am Corp. was more guarded. Spokeswoman Susan Timper said Pan Am is looking at the British Airways move "and is studying it."

Airlines have been stung with cancellations since U.S.-led forces launched an air assault on Iraq and occupied Kuwait in mid-January. Higher fuel prices and the recession in the United States also have hurt air carriers.

Rather than the usual 30-day advance purchase for discount fares, British Airways has set a March 15 deadline for purchase of the cut-rate tickets for travel beginning April 6. Travel must be completed by Oct. 31.

Passengers who cancel less than 14 days before their trip will receive credit toward a ticket on a future flight. No changes are allowed less than 14 days before the trip.

The fare cut brings the peak summer fare on midweek flights between New York and London to $588. The midweek fare is $568 from Miami or Tampa, $602 from Chicago and $716 from Los Angeles. Cheaper fares are available in April, May and October. Fares for weekend flights are higher.

Discounts also will be available for some tour packages offered by British Airways Holiday Land program.

Last week, America West started a fare war among domestic carriers with a three-day promotion, which ended Saturday, offering tickets to any of its domestic destinations for half price.

America West said it launched the promotion to prompt people to start traveling again.

Airlines scrambled to match America West within hours.