Northwest Laying Off 2,500

The airline is also instituting new fees to battle soaring fuel costs.
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Northwest Airlines

(NWA)

on Wednesday said it would lay off 2,500 employees and institute new fees in response to reduced flights due to sky-high fuel prices.

Northwest, which is merging with

Delta Airlines

(DAL) - Get Report

, said the job cuts would come in frontline and management personnel. The airline also will also match the $15 fee for passengers' first checked bag first instituted by

American Airlines

(AMR)

, as well as new fees for award tickets and ticket changes.

"Our fuel costs have more than doubled in the past year," said Northwest President and CEO Doug Steenland. "In order to manage through this unprecedented fuel challenge, we have to take action to both control costs and increase our revenue."

Steenland said the airline expects the measures to save between $250 million and $300 million a year.

In addition to the $15 fee for the first checked bag, beginning for tickets sold on or after July10 for travel on or after Aug. 28, Northwest will charge $25 for a second checked bag and $100 for three or more checked bags. Certain frequent fliers and full-fare coach passengers will be exempt from the policy. American,

United Airlines

(UAUA)

and

US Airways

(LCC)

have similar fees.

Northwest also is implementing a service fee of up to $100 for award tickets and up to $150 for ticket changes.

Northwest shares were falling 16.2% to $6.26 in recent trading.

This article was written by a staff member of TheStreet.com.