Northwest Airlines Matches Fuel Charge Increase Implemented by Other Network Carriers

In response to record-breaking fuel costs, Northwest Airlines (NYSE: NWA) today announced it will match the fuel charge increase put in place by other air carriers.

Northwest will increase the fuel surcharge $10 each way, matching the increase first implemented by Delta Air Lines and matched by United Airlines, American Airlines, and Continental Airlines. This brings the fuel surcharge on domestic fares to $65 each way.

Crude oil, which is Northwest’s largest operating expense, closed at $123.69 per barrel on Thursday. Oil accounts for nearly 40% of Northwest’s costs and continues to represent an extraordinary challenge for Northwest and the airline industry.

Today’s fuel surcharge increase comes on the heels of the NWA’s first quarter earnings report, where the Company reported a $445 million increase in year-over-year fuel expense.

Last 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.