Northwest Airlines to cut 2,500 positions

EAGAN, Minn., July 9 (UPI) -- Northwest Airlines said Wednesday it would join the list of U.S. carriers that are reducing flights and jobs and adding fees to survive rising fuel costs.

The carrier, based in Eagan, Minn., said in a statement it would cut 2,500 jobs and "match its competitors and charge fees for the first checked bag and for frequent flier award tickets."

The company said it will also increase fees for ticket changes.

"Our fuel costs have more than doubled in the past year," Northwest President and Chief Executive Officer Doug Steenland said in the statement.

"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 said it would reduce international and domestic capacity by 8.5 percent in the fourth quarter and attempt to reach targets for staff reductions through attrition and voluntary "early-out" programs.

Starting with tickets sold on or after July 10, the carrier will add a $15 fee for a first bag. In addition, as of Wednesday, fees for ticket changes will increase to $150 for domestic and international flights, the statement said.