GSA announced its fiscal 2016 City Pair Program contracts Aug. 13, which are expected to shave off $2.35 billion in travel costs for the federal government.

The City Pair Program negotiates airfare for official federal government travel for fixed rates, which the GSA said are 52 percent lower than comparable commercial fares.

The contracts were awarded to United, American—which will consolidate with USAir on Oct. 18—Southwest, JetBlue, Delta, Hawaiian and Alaska airlines. GSA noted that airfare for the 2016 contract dropped 3 percent from 2015 and City Pair-participating markets increased 16 percent to 9,160 locations.

"GSA's mission is to help federal agencies save money, and that includes getting the best price for government travelers," said Federal Acquisition Service commissioner Tom Sharpe, in a statement.

"By leveraging the government's buying power through the City Pair Program, we help federal agencies reduce travel costs and save billions of taxpayer dollars."

The new contracts will take effect Oct. 1, 2015.

The City Pair Program allows federal employees to book airfare for official travel at a pre-negotiated rate with contracted airlines. Find more information on the program here.

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