Northwest Airlines to Cut 2,500 Jobs

July 9, 2008 11:52:43 AM PDT
Northwest Airlines is cutting jobs because of high oil prices. The carrier says it will eliminate 2,500 management and front-line jobs. It previously announced that it would reduce its flight schedule by about 9 percent later this year. President and CEO Doug Steenland blames the cuts on fuel costs that have more than doubled in the past year.

Northwest says it will offer voluntary departures, vowing furloughs will be used only if it does not get enough volunteers to reach the 2,500 jobs target.

Northwest also says it will begin charging $15 for the first checked bag, matching a fee added by other carriers this year. And the airline says it will begin charging a fee for frequent-flier award tickets - from $25 for domestic tickets to $100 for flights to Asia.