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

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.

Contacts

Northwest Airlines