Northwest Airlines plans job cuts, fees

MINNEAPOLIS – Northwest Airlines Corp. said on Wednesday it will cut 2,500 jobs because of high oil prices, and will soon begin charging $15 to check luggage and up to $100 to redeem a frequent-flier award ticket.

The airline said it expects the new fees to add $250 million to $300 million a year in revenue.

Northwest said the job cuts – which represent about 8.3 percent of its work force – will include front-line and management workers. It said it will start with voluntary departures and leaving open jobs unfilled before moving to furloughs to reach the 2,500 total.

Northwest had said previously it would have fewer workers after it cuts 8.5 percent to 9.5 percent of mainline flying in the fourth quarter of this year. It has said overall capacity would shrink 3 percent to 4 percent because it is adding regional seats. As of the end of 2007, Northwest employed about 30,000 people.

President and Chief Executive Doug Steenland said Northwest’s fuel costs have more than doubled in the past year.