Northwest Airlines to Increase Fares
Posted on: Monday, 28 April 2008, 09:00 CDT
Northwest Airlines has announced that, in response to rising fuel costs, it will match the fare increases by approximately 3% to 5%, first implemented by United Airlines and matched by Delta Air Lines, American Airlines, and Continental Airlines.
The fare increase comes on the heels of this first quarter earnings report, showing Northwest Airlines lost $4.1 billion. Earlier in April 2008, the airline has announced a plan to mitigate the dramatic fuel cost increases.
The plan included revenue enhancements from increased fees, fares and fuel surcharges; domestic capacity reductions of 5%; 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.
Jim Cron, senior vice president of revenue management at Northwest Airlines, said: "We are making this move to offset the extraordinarily high cost of fuel."
Source: Datamonitor
Related Articles
- Airline Fuel Surcharges Fuel Distrust
- Video: Gas Prices, Fuel and Energy Costs to Increase This Winter
- Northwest Airlink Carrier Mesaba Airlines Completes First Revenue Flight With New CRJ900 Aircraft
- Frontier Airlines Named Best U.S. Low Cost Carrier By Readers of Business Traveler Magazine
- Airport Budget Up 4.2 Percent: Significant Increases in Projected Fuel and Utilities Costs Are Reflected.
- US says China can greatly cut airline fuel use
- Mesaba Airlines Follows Northwest into Bankruptcy
- Fuel Prices May Cost State $100m
- FAA pressed to act on airliner fuel tank safety
- Feds: Obesity Raising Airline Fuel Costs
 |
 |
User Comments (0)
RSS Feeds