Jul. 9 — Northwest Airlines will cut 2,500 jobs and start charging $15 for a passenger's first checked bag as it tries to cope with rising fuel prices. The airline will also charge a service fee for using frequent flier miles.
"Our fuel costs have more than doubled in the last year," said Doug Steenland, Northwest's CEO, said today. To manage the fuel costs, the airline has to "both control costs and increase our revenue," he added.
The 2,500 jobs will come from across the company, including management, the company said. The carrier said it will use a combination of an early-out program, voluntary leaves, work-rule modifications and attrition to meet the job cut target. The employee cuts are tied to the capacity reductions coming in the fourth quarter, which the airline previously announced.
The looming layoffs and the checked bag fee follows other large airlines that have been making similar cuts and adding fees in recent weeks.
The $15 checked bag fee will apply to tickets sold on or after July 10 for travel starting Aug. 28.
For passengers cashing in frequent flier miles, starting on Sept. 15 Northwest will charge $25 for domestic tickets, $50 for transatlantic tickets, and $100 for flights across the Pacific.
"This is a temporary service fee to partially offset our fuel costs," Steenland said. "As fuel comes down, we will revisit this decision."
Also, starting July 9, the fee for changing domestic tickets will increase to $150, up from $100. International
ticket change fees will increase by an additional $50, to $150 per ticket, depending on the class of service and other restrictions.
