Northwest Airlines blames oil prices for 2,500 job cuts

0 Comments | AFP, July, 2008

WASHINGTON (AFP) — US carrier Northwest Airlines announced Wednesday that it was cutting 2,500 jobs in a move it blamed on rocketing crude oil prices.

Northwest said it would also start charging fees for a first checked bag and for frequent flier award tickets among other measures aimed at offsetting a spike in jet fuel costs.

"Our fuel costs have more than doubled in the past year," said Northwest's chief executive Doug Steenland.

Steenland said the carrier had been forced to overhaul its operations because of "unprecedented" global fuel costs.

Oil prices, which have surged in the past year amid supply and geopolitical concerns, were simmering around 137 dollars a barrel Wednesday.

Northwest announced the job losses after saying last month...