Northwest Airlines Matches Fare Increase Due to Continuing Rise in Fuel Costs

Fri Apr 25, 2008 9:00pm EDT
 
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EAGAN, Minn.--(Business Wire)--
In response to rising fuel costs, Northwest Airlines (NYSE: NWA)
today announced it will match the fare increases put in place by other
air carriers.

   Northwest will match the approximately 3%-5% increase first
implemented by United Airlines and matched by Delta Air Lines,
American Airlines, Continental Airlines.

   "We are making this move to offset the extraordinarily high cost
of fuel," said Jim Cron, senior vice president of revenue management.

   The fare increase comes on the heels of this weeks' 1Q earnings
report, showing Northwest Airlines lost $4.1 billion. Earlier this
month the airline announced a plan to mitigate the dramatic fuel cost
increases. That plan included revenue enhancements from increased
fees, fares and fuel surcharges; domestic capacity reductions of five
percent; a fleet reduction of 15 to 20 aircraft; an estimated $100
million reduction in non-aircraft capital expenditures; and a $100
million improvement to the airline's bottom line, profit and loss
statement, that will be achieved through other cost reductions,
productivity improvements and revenue enhancements.

   Northwest Airlines is one of the world's largest airlines with
hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam,
and approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the world's
most extensive global networks. Northwest and its travel partners
serve more than 1,000 cities in excess of 160 countries on six
continents.

Northwest Airlines
Northwest Media Relations, 612-726-2331
www.nwa.com

Copyright Business Wire 2008

 

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