Travelers face 3 new fees to fly Northwest

ByABC News
July 10, 2008, 5:42 PM

— -- Already stung by higher fares, air travelers flying who fly Northwest are about to get socked by a trio of fees.

Thanks to the rapid rise in jet fuel prices, Northwest Airlines announced Wednesday that it will start charging fees on customers' frequent flier award tickets and $15 for a passenger's first checked bag.

The company also will eliminate 2,500 jobs across its operations.

The airline also raised the fee for making changes to domestic, nonrefundable tickets from $100 to $150. The fee for changing an international ticket will increase between $50 and $150, depending on the class of service and other restrictions.

The moves illustrate how airlines are doing anything they can to cut costs and increase revenue as they struggle to cope with record jet fuel prices. The fee increases follow similar actions taken by other major carriers in recent months.

"Our fuel costs have more than doubled in the past year," Douglas Steenland, Northwest's chief executive and president, said in a statement. "In order to manage through this unprecedented fuel challenge, we have to take action to both control costs and increase our revenue."

Altogether, the new and increased fees are expected to generate $250 million to $300 million a year for the airline, which plans to merge with Delta Air Lines at year's end. Northwest emerged from bankruptcy protection earlier this year with significantly lower labor costs.

Industry expert Tom Parsons, chief executive of BestFares.com, said these and other fees will soon transform flying into an À la carte experience.

"It seems like in the future, all we are going to get is a reservation in the sky," he said. "You are going to end up paying for anything extra you want."

A risky move?

Parsons also warned that Northwest and other carriers charging new fees risk losing more business to low-cost carrier Southwest Airlines, which so far hasn't implemented anything similar.

"Northwest just put up a big billboard: Fly Southwest Airlines," he said.