A new age of transatlantic travel opened yesterday when 70-year-old restrictions were lifted, allowing airlines for the first time to fly non-stop between any city in Europe and any in the United States.

The “Open Skies” agreement, hammered out over the past six years, will have its biggest impact on London’s Heathrow, greatly expanding the airline destinations offered by Europe’s busiest airport.

However, despite the promises of airlines and EU officials, the big expansion of routes is not likely to bring fares down much for leisure travellers. With fuel prices soaring, airlines are expected to pass on the benefits mainly to the business customers who generate their main income.

The EU Commission was adamant that the freer market would cut prices. “This marks the start of a new era in transatlantic aviation,” said Jacques Barrot, the Transport Commissioner. “This agreement will bring more competition and cheaper flights.” The EU estimates that the accord could provide a major boost to transatlantic air traffic with more than 26 million extra passengers expected over the next five years.

Some airlines, notably Virgin Atlantic, are sceptical. Richard Branson, its boss, has called the Open Skies agreement “a damp squib”. Still lacking is the right for European airlines to operate between cities in the United States. Foreigners are still not allowed to control US airlines. These issues are now under negotiation and failure to reach agreement could scupper the whole Open Skies arrangement.

The new pact replaces the old patchwork of 21 bilateral aviation agreements between Washington and European nations. Six EU states did not even have the right to serve the United States directly.

On the opening day yesterday, Continental airlines began Heathrow services to Newark, New Jersey, and to Houston, Texas. Delta is also starting Heathrow flights to New York and Atlanta and US Airways is flying between Heathrow and Philadelphia. Air France, which could until now only fly the Atlantic from France, is to take advantage of the new rules to fly non-stop from Heathrow to Los Angeles today.

Airlines expect revenue to rise, thanks to their new destinations.

Under the old cartel system, only four airlines - British Airways, American, United Airlines and Virgin Atlantic - were allowed to fly to Heathrow from the United States. British Airways, the dominant power at Heathrow, is expected to be a loser from the new arrangement.

The treaty has inspired the birth of a new carrier, owned by British Airways. The new Open Skies airline, will begin service between Paris, Brussels and New York this summer.

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