July 09, 2008

Northwest cutting jobs, raising fees

From CNN.com:

EAGAN, Minn. (AP) -- Northwest Airlines said Wednesday it will be cutting its frontline and management work force by 2,500 people, or a little more than 7% of its total employees, blaming capacity cuts stemming from rising oil prices.

The airline also said it will begin charging $15 for a passenger's first checked bag and service fees for frequent-flier tickets. It also will boost fees for ticket changes.

Northwest's rivals have also started cutting jobs and charging extra fees to offset skyrocketing fuel prices.

Earlier this month, American Airlines (AMR, Fortune 500) said it would be cutting 7,000 staff members by the end of 2008. United Airlines (UAUA, Fortune 500) said last month it intends to eliminate 950 pilot jobs on top of previously 1,600 job cuts.

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